The biggest reason why day traders fail is usually due to the lack of a consistent and profitable strategy they can stick to over time. To make a profit using a trading strategy, it's crucial to know how to identify trends on a price chart. By the end of this article, you will have a complete understanding of this effective trading strategy. The only way to be successful in implementing this strategy is by mastering how to recognize a trending market. As you can see on the Aussie Canada five-minute chart in this example, this trade ended with a 2.4 to one reward-to-risk ratio, earning thousands of dollars in a short time. Identifying the major swing levels on a chart is essential. These include the initial starting point, the new structure high, the pullback, and the pulling back levels. For us to know that the market's pullback levels are at the bottom, we need to look for the market to break into new highs. If the market doesn't break through the lowest low of the pullbac...
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