People are biased in favor of the major pair trading strategy. However, advanced traders love to trade the cross pair as it provides them more profit-taking opportunity. Being a naïve trader, you might not know how things work in real life. But with the help of the demo account, you can back-test your trading method and create a unique trading method to boost your profit factor. But using a traditional approach in trading is not going to help. You will be limited to major pair of trading strategies. You should learn to trade the cross pairs.
The major pairs are those pairs which are formed with a combination of the U.S dollar and another pair. But if you spot any pair without a combination of the major pairs, you are dealing with a cross pair. To trade the cross pairs, you have to follow a different trading method. We have four amazing tips and if you can follow these tips, you can expect to make a decent profit.
Avoid using the indicators
Those who are thinking by using the indicators they can become a professional, is making a big mistake. The use of indicators should be limited while you analyze the major pairs. In most cases, the traders should for the potential price patterns. Learning about the price action signal is a little bit complex but if you learn to deal with the basic pattern, you can make some decent progress. Find the support and resistance level in the higher time frame and try to place your trade with logic. Forget the fact that you can trade the lower time frame. The market is extremely volatile in cross pairs and you have to stick to a safe approach.
Try to trade the chart pattern
You should learn to trade the major chart pattern to become a skilled trader. Since the cross pairs exhibit a high level of volatility, you should use strategy associated with CFD trading. The professional CFD traders use the major chart to find the perfect trading zone. With the help chart pattern, they can secure the big market movements with a high level of precision. But learning about the major chart pattern is not easy. You have to take advantage of the demo account and only then will you be able to find the best trade setups. Instead of trying to trade the reversal, you should learn about the continuation pattern trading method. Once you master this technique, you can boost the profit factors to a great extent.
Avoid trading the news
If you intend to trade the cross pair, you must avoid trading the major news. News can create a high level of volatility and result in a big loss. Most of the false spikes are generated during the major news. Unless you have extensive skills with the candlestick pattern, you should not try to trade the key news. Try to follow the safe path and soon you will be able to make a decent profit. However, those who have to learn to analyze the major news, they can trade the major breakout with the help of news. But while using the breakout trading method in cross pair trading, the risk factors should be limited in every possible way. Never take too much risk during aggressive price movement.
Listen to the sentiment of the market
You must listen to the sentiment of the market to make some serious profit. In most cases, the traders are focused on the technical and fundamental parameters. These two factors can help you while trading the major pairs. But to trade the cross or synthetic pair, you must focus on the sentiment of the market. Those who can’t analyze the market sentiment can learn this process by reading books and articles. But never try to trade the synthetic pair unless you have a strong understanding of the market sentiment.