The Forex Holy Grail needs to be found just by the high probability trading strategies. Actually, some might say that this is not be the case then what is high probability trade? How well you know about high probability trading? The high probability trading says the percentage of winning chance. The targets of winning trades are denoted by the high probability trading. No one can calculate the percentage of winning because the Forex market is totally uncertain. If someone calculates the success rate as 90% or more then the trading system would be considered as one of the best one. Actually, the success rates which range to 60% -80% can be considered as high probability trades. The win-win percentage can be the logical explanation.
The high probability trading setup
There are two things which make the high probability trade such as the support and resistance level and larger time frames. The large financial institutions do trade by the resistance and support level strategies. The important strategy is the support and resistance level even more than the trend direction. The fact behind the support and resistance is that the whole market is aware of it. If you ask us which are the best strategy to work on Forex market then we will tell you the support and resistance levels are the best. These levels will always act as the high probability for profitable trade set-up. The traders are usually looking for support and resistance to trade. The lines are respected by the traders and they have to plot the support and resistance levels to trade successfully.
What are the problems of trapped traders
The markets move in the right direction through impulsive movements. The trading system involves corrective signs and movements and it will lead the traders to the right direction. There are many reasons for the traders to fail in the market, i.e. some of the traders don’t even have the writing plan. The pullback is complex but remember the complex pullbacks are active in smaller time frame only. Actually, not having the proper plan is the first problem for the failures and problems faced by the traders. The traders should have the proper plan to trade the market if so they will be able to trade the higher probability setup.
The facts to consider when trading using the price signals
There are certain factors that you should consider when trading online the market by the price signals. You should analyze the risk-reward ratio to make sure that the trade signals are directed in the right direction. Next, the stop loss should be kept behind the reversal candlesticks. You should also remember to use the highly reliable candlestick pattern in the higher time frame when using price action trading strategy.
Summary: the foreign exchange market is crucial; when you trade the market it is important to understand the market’s whole picture. If you do not understand the market’s picture completely you will not be able to become the professional trader. We have mentioned the high probability trades and the traps of the traders so by now, you will be able to see the market clearly. As traders, it is important to learn the aspects of the market. The easiest way to earn is by the Forex trading ONLY if you learn it.