One of the great challenges in forex trading (or any trading for that matter), is very simply being consistent in what you’re looking for each and every time you open your charts. And this is where pattern recognition can be such a great help.

When I talk about a pattern, I’m talking about a recurring set up or price configuration that is found to yield a higher probability of one thing happening over another. In other words, we look for a pattern that gives us an edge.

There are many different patterns, and I’ll just talk about a few. But let me say that the actual pattern that you choose is not as important as other considerations, such as support and resistance, overall trend direction, time of day (if you’re day trading), the trading environment, etc. And even more important than all of these considerations, is how well you manage risk, specifically money management and trade management.

I recently wrote an article on using MACD divergence as a trading pattern, and I mentioned in that article that there are certain situations that are more conducive to a positive outcome than others.

As an example, with price up against major resistance, the chances of a MACD negative divergence trade being successful, is higher. (If you want more specific information about this pattern, you can get it for free by clicking on the link at the bottom of this article).

You may also want to consider trading other types of patterns at key levels. For example I have a pattern called the "noble entry", which is really an entry technique that allows you to get into a trade on higher time frame charts, but with very small risk, and correspondingly large profit potential.

Another pattern I teach is called a "vic" trade, and it’s a trend continuation trade, with specific parameters that force you to stay in alignment with the immediate trend of the market.

Here’s the thing: If you just picked ONE of these patterns (MACD divergence, or the noble entry, or the vic trade, or ANY other pattern you like—that gives you an edge—your job as a trader becomes very simple! Catching all the up and down moves every day on a given currency pair is not your job! Trying to do that, and fretting over big moves that happen without your participation, is a total waste of your emotional energy and emotional capital! NOBODY gets all the moves.

Far too often I see aspiring traders, who so desperately want to make money trading the forex markets, trying to take every type of trade known to man. Of course this causes confusion, loss of focus, over-leveraging of one’s trading account, and worst of all, psychological damage. Not to mention trading account damage!

The point is that by zeroing in on just one pattern, trading becomes far more relaxing, and of course much less stressful. Additionally, with your entire focus on just one pattern, the chances of missing a trade, or making a trading mistake, are greatly diminished.

Do yourself a huge favor: Get good at ONE pattern, use impeccable risk management, and you’re putting yourself in a very good position to become consistently profitable!

All the best!

Vic Noble

**To learn more about forex trading and how I teach, I have a FREE e-Book, plus 7 great videos on key trading concepts that I believe will genuinely help you. No obligation, just good useful information!

http://www.forextradingandeducation.com/wp/free-fx-training/