Charts Recognition and trading wisely prevent you from failure

Recognition charts is not enough to trade successfully

Charts pattern rules is known you can find the basics here and in many other places, if you have a closer look to your charts window you'll recognize many pattern that obeyed the pattern rules, but do you think recognition is enough to be a successful charts pattern trader and get profit, let's see.

You have your chats window open, and find that there is a pattern starts to form, using your Fibonacci tool you'll define the support and resistance area and all are working fine according to your pattern rule, then all you have to do is start to open a position looking for profit.

It's about Planning your trade and your money

After that the trade starts to go in you favor, but suddenly it reverse again, and went to the opposite direction and went close to your price, then hit your stop loss, and you closed the trade with lose, then what happened and why to lose??

Actually the reason that makes traders lose a trade like that, will be the same reason to lose more, I'm talking about trades who don't use a plan for trading, using the proper plan could help you to get a profit from the above trade and help you to go with the minimum possible lose, it's all about trading plan and money management.

When you take a closer look at any pattern rules, you'll find that each pattern has a specific rule about resistance and support levels, so you can define your entry point, stop lose, profit targets based on this levels, which mean you'll get a profit with every candlestick moves, simply by hitting one of Fibonacci level, you'll close a position and get profit, if you make this simple steps in the above trade, you'll find that the trade is closed with a profit even if it reverse.