By Warren Seah
Using a visual chart trading tool on the Metatrader 4 platform to confirm forex chart patterns, it serves as a verification signal tools as well as an alert tool, informing the trader about an upcoming trade opportunity. Making money in the market isn’t easy. So much of human nature is geared to poor trading habits that it is difficult to overcome the challenges to being a good trader.
A Systematic Approach with Visual Chart Trading Software
Visual chart trading tools make trading less subjective and more systematic process. This has help traders in many ways of automation and making better trade decisions which are keys to higher trading performance.
Visual Chart Trading Tool Sets the Forex Trader for Good Trading Habits
1. Don’t enter a trade in the first 30 minutes of the day.
Specifying the time at which to accept a trade signal and refuse trade signals outside of the specified time can now be automated with the visual chart trading tool. We use it to define our market trading hours while leaving the work of placing trade entries or refuse trade entries to be carried out by the software.
2. Pay a good price
When technical analysis research is performed on the charts, the trader can identify a good price which constitutes an attractive buying opportunity. However for most of us, we may not have the luxury to stay at the computer and wait for price to reach the levels which constitutes a good bargain.
Hence, we use the visual chart trading tools to draw a line at the bargain price points. If price was to reach the specified levels, the charting tool will place a buy or sell entry automatically on the trader’s behalf. This process ensures that we do not chase the market after a signal was missed or miss anymore attractive entry opportunities due to not having the time to trade in front of computer.
3. Trade only based on completed chart patterns
Patterns do not form overnight. They take weeks or even months to form. It is very tempting to enter a trade based on the supposition that a pattern will complete. Thus, it is very tempting for a trader to get into a trade early on the presumption that the forming patterns may eventually formed what the traders has first perceived to be.
In order words, he wants to beat the crowd before they realize the pattern has broken. However, an incomplete pattern isn’t a pattern at all. Pulling the trigger or getting into a trade too early may backfire many times that it simply doesn’t become worthwhile for the risk to profits.
We use the special visual chart trading MT4 tool to draw a line at those critical levels. And when these levels are broken or bar closed beyond these levels, software will alert us and should we programmed it to make an automated entry will they then performed the instructions as described.
4. Always trade with an exit plan
An initial stop loss must be in place at all times during a trade. This is a safety net for Forex trader in a 24 hour market where any events may impact our positions in a short span of time. An exit plan is either being stopped out or trade has hit its targeted price.
Although MT4 has basic features of placing stop loss and take profit levels, it’s function is extremely basic where only horizontal targeted exit prices can be specified. The visual chart trading tool allow us to simply draw any line with any gradient or slope, when price break or touch the pre-drawn line, will warrant a trade exit.
This way of placing your exit provided more flexibility to a channel-based forms of trading. And we can easily introduced multiple scaled out exits or partial close lines to close position partially overtime when market break each of these drawn lines.
Visual Chart Trading To More Profits
You have the advantages on your side now. However you have a very powerful charting tool at your disposal to calmly and rationally judge the trading signal. And you know some critically important rules of the road that lead to sound trading. I hope this article will be a powerful visual chart trading guide as you chart your way to more profitable and consistent trading.
Warren Seah
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