Forex for a trader
Learn to trade forex without indicators

Learn to trade forex without indicatorsTrading Without Indicators. Trading a Recent Day by Price & Volume. The best traders learn to read the markets by price and volume alone, without indicators. Indicators can certainly be helpful to the trader when used properly, but they can also cause confusion. The same indicator signal that produced a winning trade yesterday can generate a loss today. Being able to read the chart—even if you continue to use indicators—is a skill that will serve the trader well. Selling Off the Open—Two Short Trades. A 5-minute chart of the S&P e-mini (ES) on a recent trading day is shown below. Immediately after the US session opens, the market falls through modest support with increased volume (bars A, B & C). Supply has entered the market. The trader should now be looking for short trade opportunities, and a choice trade presents itself at D. Note the low volume on the rally into resistance. Buyers could not take control of the market, and the reversal bar at D is an excellent place to short. In the next 10 minutes, the market swiftly falls 17 points ($850contract) and the savvy trader would cover at least part, if not all, of her shorts around the lows of E as heavy volume emerges. Sudden volume spikes like those occurring at E and again at F, often signal the market will reverse.

At G, the market again tries to rally, but fails. Compare the volume at G with the volume at F. The market tries to push through the same price area, but on significantly less volume. There isn’t enough fuel behind the up move, and the next bar reverses. After going sideways for 25 minutes with weak upside volume, the market is ripe for another short at H. Getting Ready to Rally. Again, the market falls swiftly (about 12 points; $600contract) over the next 15 minutes. Note that the range of price bar I is significantly smaller than the range of the last bar (E) to drive down. The volume is also significantly lighter. These are telltale signs that the selling is beginning to dry up. By the time the S&Ps get to K, we see the drives down have shortened, volume is the lowest of any push down, and closes are clustered at the same level—clear signs the morning down draft is over. Rally and First Long Trade. Confirmation comes on the rally to 1. Price breaks the down trend line and volume increases on the rally.

The pullback to 2 shows diminished down volume and the same clustering of closes as seen at K. This is the first opportunity of the day to go long. Longs are rewarded as we see buying push the market higher. Note that each bar driving up (“b”) brings out increased volume, a strong sign the market is now in a rally mode. A pullback to 3 does not bring out supply, though an entry here is not especially clear. The smart trader waits for a better opportunity. This comes after the strong rally to 4. Note solid upside progress in the price bars with each closing on its highs. Volume also expands on the rally, another indication buyers are in control. A Second Long Trade. After the rally to 4, the market runs sideways for 15 minutes, unable to react lower.

Bar 5 shows buyers eager to push prices up, and bar 6, a narrow bar with light volume, shows no supply at this level and an excellent spot for a long entry. Once again, buyers push price up aggressively, seen on the ascending “b” price bars with good volume, wide ranges and strong closes. A trade held into the close netted about 15 points ($750 per contract). What is the Best Technical Indicator in Forex? Now on to the good stuff: Just how profitable is each technical indicator on its own? After all, forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money! In order to give y’all a comparison of the effectiveness of each technical indicator, we’ve decided to backtest each of the indicators on their own for the past 5 years. Backtesting involves retroactively testing the parameters of the indicators against historical price action. Using these parameters, we tested each of the technical indicators on its own on the daily time frame of EURUSD over the past 5 years. We are trading 1 lot (that’s 100,000 units) at a time with no set stop losses or take profit points. Also, we were assuming we were well capitalized (as suggested in our Leverage lesson) and started with an example balance of $100,000. Aside from the actual profit and loss of each strategy, we included total pips gainedlost and the max drawdown. Again, let us just remind you that we DO NOT SUGGEST trading forex without any stop losses. This is just for illustrative purposes only!

Moving on, here are the results of our backtest: The data showed that over the past 5-years, the indicator that performed the best on its own was the Ichimoku Kinko Hyo indicator. Surprisingly, the rest of the technical indicators were a lot less profitable, with the Stochastic indicator showing a return of negative 20.72%. Furthermore, all of the indicators led to substantial drawdowns of between 20% to 30%. However, this does not mean that the Ichimoku Kinko Hyo indicator is the best or that technical indicators as a whole are useless. Rather, this just goes to show that they aren’t that useful on their own. Think of all those martial arts movies you watched growing up. Aside from The Rock and the People’s Elbow, no one relied on just one move to beat all the bad guys. The Rock used a combination of moves to get the job done. Forex trading is similar. It is an art and as traders, we need to learn how to use and combine the tools at hand in order to come up with a system that works for us. This brings us to our next lesson: putting all these indicators together! Learn to trade forex without indicators. about 6 hours ago by Forex Ninja. Heads up, system traders!

I’ve rounded up the SEVEN mechanical forex strategies right here to see how they stack up against each other. HLHB Trend-Catcher System Update (Aug 20-24) about 9 hours ago by Hucklekiwi Pip. Another positive week for the HLHB System! Thanks to strong dollar trends, this trend-catcher was able to bag an additional 201 pips. Woot! Woot! Week In Review At The Happy Hunter’s Lodge (August 20 – 24) The Daily Hunt With The Happy Hunter Trading System (Aug. 24) 3 Ways to Help You Take Demo Forex Trading Seriously. USD Weekly Review (August 20-24) CAD Weekly Review (August 20-24) The Daily Hunt With The Happy Hunter Trading System (Aug. 23) GBP Weekly Review (August 20-24) EUR & CHF Weekly Review (August 20-24) JPY Weekly Review (August 20-24) NZD Weekly Review (August 20-24) AUD Weekly Review (August 20-24) Cryptocurrencies Weekly Digest (August 19-24) Featured Contributors. Forex Trading School. New to trading forex?

Learn to trade through our online course. Our Trading Community. Ask questions, share trade ideas, discuss markets, and more! Stay on top of market-moving events and data releases with our news calendar. Partner Center Find a Broker. Recent Forum Activity. Discuss your market views with other traders. 13 Views 0 Replies. 363 Views 6 Replies.

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You can go back to sleep. Trading Insights & Analysis. HLHB Trend-Catcher System Update (Aug 20-24) about 9 hours ago by Hucklekiwi Pip. Another positive week for the HLHB System! Thanks to strong dollar trends, this trend-catcher was able to bag an additional 201 pips. Woot! Woot! Week In Review At The Happy Hunter’s Lodge (August 20 – 24) The trading week is done and a new one will soon begin, which means that it’s time to take stock of how the two Variants of the Happy Hunter Price Action Trading System fared this past week. The Daily Hunt With The Happy Hunter Trading System (Aug. 24) Volatility picked up during the later half of the day. And thankfully, both Variants were able to score a couple of wins, allowing both Variants to recover a bit from the heavy losses sustained on August 23. 3 Ways to Help You Take Demo Forex Trading Seriously. Some forex traders tend to take demo trading less seriously since there’s no real money on the line. Here are some exercises to help you stay focused. The Daily Hunt With The Happy Hunter Trading System (Aug. 23) Trading conditions were really bad on August 23, so the hits just kept on coming.

The Fixed TP Variant, in particular, is now in danger of entering negative territory. So sad! Chart Art: Long-Term Setups on USDCAD and EURJPY. It’s Friyay, yo! I’ve spotted forex trade opportunities on USDCAD and EURJPY that should set you up over the next couple of days. Check them out while they’re hot! Trade Adjustment: Downtrend Momentum In AUDCAD. Lots of movement in AUDCAD since entering short at market last week, so it’s time to adjust the plan to hopefully maximize my potential gains if downtrend momentum picks up again. The Daily Hunt With The Happy Hunter Trading System (Aug. 22) Trading conditions deteriorated even further on August 22. And this time, both Variants were forced to return some of their hard-won gains. Boo hoo! Intraday Charts Update: Triangles On CADJPY & NZDJPY. Wassup, dawg! If you’re a breakout chartist and you’re lookin’ for short-term setups on the yen, then I’ve got yo fix ‘coz I’m serving up a couple of triangles in today’s intraday charts update. Short-Term Bollinger Reversion Strategy 2.0 (Aug. 17 – 23) It was another mixed run for this strategy, but it managed to catch a full win on one of the pairs.

Check out the latest signals! Trade Closed: NZDCHF Range Support Breakdown. Stopped out on a pullback! But it’s all good as my adjusted stop loss was able to lock in more than a hundred pips with this early exit. Chart Art: Trend and Range Setups on USDCHF and NZDUSD. Whether you like trading trends or ranges, I got yo back with these sweet forex setups on USDCHF and NZDUSD. Check them out, yo! Importance of Flexibility in Forex Trading. A mistake many forex traders make is to forget to assess what type of market they are working with and adjust their approach accordingly. Cowabunga System Daily Update: Keep Losses Small And Your Wins Big! It’s important to minimize your losses and maximize your wins. Today was a perfect example of that principle.

See how it all went down in today’s Cowabunga Surf Report. The Daily Hunt With The Happy Hunter Trading System (Aug. 21) Trading conditions on August 21 were still rather unfavorable. Even so, the Fixed TP Variant recovered from its recent slide and is now up by 4.39% for the month. As for the Trailing Variant, well, it held onto its gains at least. Procrastination is the art of keeping up with yesterday. Don Marquis. BabyPips. com helps individual traders learn how to trade the forex market. We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey. How to Trade Without Indicators – Step by Step Guide to Chart Analysis. Updated: September 21, 2017. Lets be honest, most traders LOVE indicators – there is always an element of excitement when you discover a new shiny tool to tinker with on your charts. But, the real truth is – everyone is searching for a fictitious “holy grail indicator” that is going to remove the anxiety from trade decision making. As you probably know all too well, this develops into a lovehate relationship when nothing lives up to your expectations.

Then escalates into a vicious hunt for the “perfect indicator” – expending a lot of wasted energy. Now, at some point in your trading journey, you’re going to say to yourself: “ I want to learn how to trade without indicators! ” Regardless of what has led you to this point, this new quest for knowledge will generally lead you down the path to price action trading. Price action is a methodology, a skill of reading the naked candlesticks directly. As a price action trader you base your decisions purely on what price is doing right now, compared to what it has done in the past. Today, I would like to arm you with some kick-starter knowledge to usher you into indicator free trading with a simple step-by-step guide to making sense of a price chart – finally extinguishing that dead-end search for holy grail accessories. For those who are already active price action traders, keep on reading – it’s always good to refresh your mind of the basics to keep you anchored to the foundations you trade from. Step 1: Read the Market Structure. I believe one massive hole exists in many trader’s decision making process – the inability, or the neglect to read the market structure before pulling the trigger. Understanding market structure is basically tuning yourself in with the chart, and getting a good ‘read’ on “which way the wind is blowing”.

It’s such a simple ‘back to basics’ skill, that many just lose touch with. Even though market structure is basic technical analysis, it’s very important – you need it embedded into every trading decision you make. For those who don’t know what I mean when I say ‘market structure’ – don’t worry it’s really simple. Market structure is interpreting the arrangement of high and low points of price on the chart, or to be put more bluntly – it is the technical analysis of the combination of: higher highs (HH) and higher lows (HL), or lower lows (LL) and lower highs (LH) – which are sometimes referred to as swing highs or lows. The order in which new highs or lows occur, can give you a very solid foundation to determine where the market is moving to, or not moving to… Basic structure analysis will help you identify things that most traders surprisingly struggle with – allowing the price action to communicate to you if a market is: In a Bullish Trend In a Bearish Tend Ranging Between Two Levels Emerging into a New Trend Forming a Major Bottom to Top. Checkpoint. Identifying Trending Structure. Everyday, the same question pops up – How do I identify the trend? This is such a simple hurdle that barricades too many traders from advancing with their chart reading skills. Many try to use complex indicators, or mathematical indicators to tell them when a market is trending.

That’s completely unnecessary – don’t rely on software to tell you if a market is trending or not, it only takes seconds if you follow this simple rule. A trending market is one that is making higher highs and higher lows – OR – a market that is making lower lows and lower highs. It just seems to simple to be true right? Well trust me – that’s all you need to look out for to identify trending conditions. If you can identify this simple structure, you can identify a trend… It’s almost like a connect the dots puzzle. Map out the major swing highs and lows, then connect them up, like I’ve done with the yellow arrows – and you will ‘see’ the trending structure. Even though trending markets are the ideal conditions for making money, traders get so burned by them because they’re either trading in the wrong direction, or entering out of position. Remember, you want to buy low, sell high – so generally speaking, you want to wait for price to retrace into swing lows, or swing highs before entering the trend. Don’t be the trader who chases price as it’s making new highs or lows, the next retracement will likely stomp you out. Checkpoint. Ranging Market Structure. Ranging markets can be really easy to see, and other times a little more difficult.

The problem with ranging conditions is they’re a neutral ‘anything goes’ kind of sideways market – creating an undesirable trading environment. In a text book scenario – ranging markets occur when price is trapped between two major levels – so you continuously see high and lows printed at the same horizontal levels… Everyone knows the text book range structure – but this rarely occurs in every day markets. Ranges are normally messy and turbulent, and don’t have clearly defined upper and lower boundaries. Generally you will have to identify the range by marking swing points that occur in the same area… Notice how different the ranging market is in the chart above. This is a more realistic example how ranges normally behave, and why they can be so difficult to trade. Because there is no clearly defined top or bottom, it makes it hard to pin point reversal trades. As you can see, price gets very noisy around the range boundaries – which is why you must be cautious when trying to trade these ranging structures. The more clearly defined the range the better. Some ranges are just so noisy, it’s not worth the risk. Checkpoint.

Unreadable Market Structure. To finish off the discussion on market structure, there is one very important thing you need to know – something that traps a lot of traders and becomes a huge black hole for money. You can’t make sense of all market conditions! There are some charts which are so crazy, their market structure doesn’t make sense. If you can’t get a read on the situation, then it’s probably not worth trading at all. Sometimes there is absolutely no explanation for erratic price behavior. Even after following the swing points and highlighting the market structure – there is nothing going on here. Don’t be the trader who thinks they can analyse, and ‘beat’ the market under any conditions – it will lose you a lot money if you attempt this! Wait for the conditions to clear up and you will be able to enter the market with more confidence, achieving better success. Checkpoint. Step 2: Identify Likely Turning Points. After you get a read on the chart situation, you should know what direction you want to be trading – that’s if you want to be trading at all. The next critical thing to do is to find the most likely place price is going to turn around. This is where we step up our technical analysis and use things like horizontal levels and trend lines. Other traders may use additional technical turning points such as: Fibonacci levels Pivot Points Psychological price levels like ‘big round numbers’ But just for the record, I don’t use any of the above in my technical analysis. I stick to the very basics, and it serves me well. To start building a case for a high quality, high probability trade – find those logical, proven turning points on the chart.

Allow me to demonstrate this with simple, but powerful support and resistance analysis. In the chart above, we identify the market structure and use support and resistance level to highlight potential turning points. Now, anything can happen in Forex at any time – but there are two highly probable scenarios here… Price will retrace into the old support, and use that as new resistance and reverse there Price will continue to sell into the major range support level, where we will most likely see price turn around – or at least ‘bounce’ off. Remember how I said most traders usually get burned by trends, because they trade out of position? Follow the chart example below for a classic example… The example above shows how market structure and simple technical analysis can help you really start to master your chart reading skills. We identify up-trending conditions and also mark out important support & resistance levels to pin point likely turning points. We can see that the current position of price is in a bad position to consider buying into the trend – this is how traders lose their money by trend trading incorrectly. They believe “well, the trend is up, so I will start buying”. It’s called chasing price or buying out of position – learn how to enter a trade correctly. By following the market structure like I showed you in step 1, we know that price is likely to retrace soon, and correct into new lows. This is where the saying “buy low – sell high” comes into play. It means to use the trend’s retracements to our advantage, and always get into the trend at a smarter price. Sometimes support & resistance levels don’t make sense to use – so you have to adopt a trend line from time to time. I try to be very minimalistic with trend lines – because it’s very easy to get carried away.

In most cases you only ever need to have one on your chart to do the job… Notice in the chart above, a declining trend lines was the main turning point – illustrated easily by the major swing highs printing lower highs each time. There were a few price action sell signals off the trend line turning point, which did turn out to be very lucrative trades. Checkpoint. Step 3: Wait for a Trade Signal. The final piece of the puzzle is to actually wait for a buy or sell signal from your trading system. If you’re trading naked price charts, then this is most likely going to be in the form of a candlestick reversal signal, or a breakout catalyst pattern. The most common candlestick signal is the Rejection Candle, and the best trigger signal for learning to trade without indicators. To sum up this guide – I am going to bring all the steps together and use a Rejection candle as an example for our trade signal. So we highlight our market structure… Remember to ‘read the chart’ by following the swing highs and lows.

Let the chart communicate to you what it is trying to do. We can see this market is currently in consolidation – I am not a big fan of trying to trade inside consolidation structures, so the best thing to do is to wait for a breakout before taking further action. Once a breakout occurs, and the chart provides more promising price action – then move onto step 2, and identify potential turning points to anticipate market reversals. Then you need to patiently wait for your trade idea to come to life. The market isn’t always going to give up a signal, but when it does – don’t think about it too much, take action. After being disciplined and patient enough to wait for all the steps here to align – we finally get our sell signal that checks the last box. In this case, a bearish rejection candle forms right where we wanted it to. The key to price action trading, and trading Forex without indicators is not to think about things too much. Keep trading simple by following these 3 steps: Make yourself a check list – Step 1: Read the Market Structure The market is weak, and trending down because it’s now making lower highs and lower lows – so we know that we want to be a seller in this market. Step 2: Identify Likely Turning Points Using simple support and resistance analysis, we identify that a likely turning point would be the old consolidation support since it was such a strong level. If it holds as resistance, the market will most likely reverse here. Step 3: Wait for a Trade Signal In this scenario the chart printed a bearish rejection candle, which is a common price action sell signal. The anatomy of the sell candle looks good, it’s large in range and the close price was below the open price – giving the candle a bearish body (this is something I like to see on my rejection candles).

As you can see this trade worked out very well – consolidation breakouts generally do create explosive moves like this, if the market offers up a signal to catch them. If you’re getting frustrated with the markets at the moment, and feel like the situation is always turning against you – you’re probably skipping one of these 3 vital steps. Here is what can happen if you skip, or don’t include any of these setups in your technical analysis… Market Structure: If you neglect to read the structure, you could simple enter very bad markets and get caught up in very undesirable turbulent conditions. Identify Turning Points: A lot of traders enter the market ‘out of position’, like selling low, or buying high. Wait to buy those higher lows, and sell the lower highs – use turning points such as horizontal levelstrend lines to anticipate these swing points. Trading Signal: Some traders will do something called ‘touch trading’, which is blindly buying or selling the market without a signal. This can work if you align step 1 & 2 together nicely, but having a trade signal basically confirms the trade idea and gives it a better chance of working out. Write these steps on a piece of paper, create a checklist – or even better, include them in your trading plan. This will help straighten up your trading, and keep you away from those bad signals, or ‘in the moment’ impulsive decisions. I hope this guide is going to help your trading – I personally follow this 3 step rule when I look at charts .

Once you apply these 3 steps over and over, eventually it will become second nature, and you will be able to spot high quality trading opportunities within seconds. If you would like to learn more about reading price charts, price action trading or my swing trading strategies – please check out our War Room for traders. We offer a price action trading course that extends on this lesson and gives you a deeper understanding of reading charts, timing your trades better and teaches you more trading signals. Please leave your comments below – they are inspiring to me, and give me the positive feedback that motivates me to create more content like this for you guys. Why Trading With Indicators Destroys Forex Trading Success. Anyone who has followed my forex trading educational material for any length of time knows that I do not promote the use of indicators as one’s primary market analysis or entry tool. Instead, I teach my students to trade off of a plain vanilla price chart by learning to read the pure price action that occurs each day in the Forex market. This article is going to explain exactly why trading with indicators is detrimental to your success as a trader, and why you should learn to trade with simple price action setups instead. So, forget about the confusing haphazard mess that indicators leave all over your charts and let this article open your eyes to the power and simplicity of trading with pure price action.

1. First hand vs. second hand data… The root of the problem with using indicators to analyze the forex market lies in the fact that all indicators are second-hand; this means that instead of looking at the actual price data itself, you are instead trying to analyze and interpret some variation of price data. Essentially, when traders use indicators to make their trading decisions, they are getting a distorted view of what a market is doing. All you have to do is remove this distortion (the indicators) and you will obtain an unobstructed view of what price is doing in any given market. It seems easy enough, yet many beginning traders get suckered into clever marketing schemes of websites selling indicator based trading systems, or they otherwise erroneously believe that if they learn to master a complicated and “fancy” looking indicator they will for some reason begin to make money consistently in the market. Unfortunately this could not be further from the truth, let’s begin by looking at the two main classes of indicators and discuss why they are flawed: • Leading and Lagging indicators… Technical chart indicators come in two different forms; they are either “lagging” indicators or “leading” indicators. Lagging indicators are also known as “momentum” indicators, the most popular lagging indicators are MACD and moving averages. Lagging indicators claim to help traders make money by spotting trending markets, however, the problem is that they are “late” to the ball, meaning they fire off a buy or sell signal into a trending market after the market has already started to trend, and just as it is probably about ready for a counter-trend retracement. The other problem with lagging indicators like MACD and moving averages is that they will chop you to pieces in consolidating markets; firing off buy and sell signals just as the market is about ready to reverse and re-test the other side of the trading range or consolidation area. So, essentially, the only real use that lagging indicators have is in helping to identify a trending market, and I do actually use certain moving averages to aid in trend identification. Check out my price action trading course to find out exactly how I implement moving averages with my price action setups, they are the only indicator that I use and I do not use them for anything other than identifying dynamic support and resistance areas. Leading indicators include such popular ones as the stochastic, Parabolic SAR, and Relative Strength Index (RSI), these are also known as “oscillators”, because they oscillate, or move, between a buy signal and a sell signal. The problem with these leading indicators is that they work horrible in trending markets because they show “over-bought” and “over-sold” conditions nearly the entire time the market is trending. So, if a market is in a strong uptrend, an oscillator will show the market as being over-bought for the majority of the uptrend, even if it continues rising for a great deal of time.

The opposite is true in a downtrend; oscillators will show over-sold conditions almost continually in a downtrend. This means that these “leading” indicators try to get traders to pick tops and bottoms; an over-bought or over-sold condition implies that the market is due for a correction, when in fact this may not be the case. The problem is that no one ever knows how long a market will trend for, so you are going to have a ton of false signals before the actual top or bottom of the market occurs. And guess what? It is often the exact top or bottom that is showed in examples of these oscillating indicators by people who are trying to sell indicator-based trading systems. They don’t show you the numerous losing signals that were fired off leading up to the actual top or bottom however. So, because we have lagging indicators that work ok in trending markets but terrible in consolidating markets, and leading indicators which work ok in consolidating markets but terrible in trending markets, many traders try to combine them on their charts in order to use them to “filter” each other. You can probably guess what results from the combining of numerous opposing indicators all over your charts; a heap of confusion and mess that causes second-guessing, doubt, over-trading, over-leveraging, and every other emotional trading mistake you can imagine. 2. Clean charts vs. messy charts… Let’s take a look at the way many traders try to trade with lagging and leading indicators all over their charts, and then let’s compare this to trading with nothing but a plain vanilla price chart and price action. Below is the EURUSD daily chart with some of the more popular indicators; stochastic, MACD, Parabolic SAR, and a few moving averages. You can quickly see just by looking at this chart how confusing it is, and you can also see that there are a lot of unnecessary variables on this chart.

There is simply no reason to make trading more difficult than it is, but having all these indicators on your charts does exactly that: Now let’s look at the same chart with no indicators at all, there is nothing but pure price action and a couple of horizontal lines drawn in to show significant support and resistance levels. It’s obvious this chart has less clutter and less confusion, all it shows is the natural price movement in the EURUSD. By learning to read this natural price movement and the conditions it occurs in, we can trade in a very simple yet effective manner. It is also worth noting that due to the fact that there are no indicators underneath the price, like the MACD and Stochastic in the above chart, you have a completely uninhibited view of price which allows for a less distorted and larger view of the price action than if you had multiple indicators taking up the bottom portion of your screen as can be seen in the chart above. 3. Clarity… As we can see in the above two images, the clarity that you get when trading off indicator-free, pure price action charts, is very obvious and significant. Being focused is very important as a trader, when you have 5 different indicators on your charts all telling you conflicting messages, this simply does not contribute to a focused and clear mindset, but rather it induces confusion and indecision. Having less parameters to analyze causes your brain to work more efficiently and allows you to rely more on your own natural trading instincts. These trading instincts become fine-tuned and fully developed when you learn to read price action on a “naked” price chart, and as you become a more proficient price action trader eventually you will develop the ability to make trading decisions with increasing degrees of accuracy and less effort. 4. Taking a closer look at two popular indicators… Let’s actually dissect two of the more popular indicators out there; Stochastic and MACD, and then compare them to trading with pure price action. The Stochastic indicator: “There are two components to the stochastic oscillator: the %K and the %D. The %K is the main line indicating the number of time periods, and the %D is the moving average of the %K. Understanding how the stochastic is formed is one thing, but knowing how it will react in different situations is more important. For instance: • Common triggers occur when the %K line drops below 20 – the stock is considered oversold, and it is a buying signal. • If the %K peaks just below 100, then heads downward, the stock should be sold before that value drops below 80. • Generally, if the %K value rises above the %D, then a buy signal is indicated by this crossover, provided the values are under 80. If they are above this value, the security is considered overbought.

” (The above information about the stochastic oscillator is quoted from investopedia. com) The MACD indicator: “To bring in this oscillating indicator that fluctuates above and below zero, a simple MACD calculation is required. By subtracting the 26-day exponential moving average (EMA) of a security’s price from a 12-day moving average of its price, an oscillating indicator value comes into play. Once a trigger line (the nine-day EMA) is added, the comparison of the two creates a trading picture. If the MACD value is higher than the nine-day EMA, then it is considered a bullish moving average crossover. It’s helpful to note that there are a few well-known ways to use the MACD: • Foremost is the watching for divergences or a crossover of the center line of the histogram; the MACD illustrates buy opportunities above zero and sell opportunities below. • Another is noting the moving average line crossovers and their relationship to the center line.” (The above information about the MACD is quoted from investopedia. com.) From the above two descriptions of the Stochastic and the MACD indicator, we can see it almost hurts your brain physically to read all the parameters involved in calculating them and how exactly they are to be used. The over-arching theme of such indicators is that you have to follow specific rules to use them. This means you have to be sitting in front of your computer waiting for the indicators line up exactly right before entering a trade. Many traders combine 2 or more indicators and require multiple signals to “line-up” on each indicator before taking a trade. You can see how quickly this jumble of messy and overly-complicated lines, colors, and signals all over you charts can confuse you and even cause you to panic in frustration.

I actually got a headache just doing the research for this article because I know that indicators like these are so pointless and unnecessary that it hurts my brain to think about it. Let’s now look at a couple examples of charts with the Stochastic and MACD indicators on them compared to the same chart with no indicators but only price action setups marking the important trading signals. Now compare the above chart to the exact same chart below with nothing but pure price action setups and support and resistance levels marked. It becomes clear when you do an exercise like this that trading off pure price action is much more logical and advantageous than trying to draw the same ultimate analysis from something OTHER THAN price. Why would you try to analyze squiggly lines that are derived from the “core” price data when you can learn to analyze and trade successfully off simple price action setups which actually ARE the “core” data? Too put trading with price action in the context of a sales metaphor; you are cutting out the middle-man and buying directly from the producer. The chart below is a daily chart of gold. Notice how the Stochastic indicator was showing an over-bought condition for multiple months in 2010 during what was a very strong and vigorous uptrend full of many profitable price action entries. If you were a follower of the Stochastic indicator you would have constantly been thinking the top was in because you would be looking everyday at your indicator that was telling you the market was “over-bought”. This is proof that the only thing that matters in any financial market is what the price action is telling you, not what some mathematic equation is predicting “should” happen. It is common knowledge after all; that what “should” happen in a market is not often what “does” happen, unless it is tipped off by price action. Now we see the same chart above with only price action: The arrows in the chart above each mark a price action setup that I teach, if you had been trading this uptrend in gold last year you would have obviously been much better off just trading the price action rather than trying to over-analyze and over-complicate everything with a bunch of messy indicators all over your charts. 5. Conclusion… If it is not extremely obvious by now why price action trading is a far superior forex strategy than any indicator-based strategy, it should be. If you want to truly understand price dynamics and the mechanics of financial markets, you need to learn to analyze price action on an indicator-free price chart. Even if you don’t go on to become an expert price action trader, you still need to have a solid understanding of how to analyze a “naked” price chart and how to trade with nothing but price action and important levels in the market. If you end up using some other trading strategy or system, your knowledge of price action and how to trade it will only make that strategy or system more effective.

The bottom line is that indicators make you lazy because they lull you to sleep in believing you don’t really need to do any work or learn anything besides how to read your “mechanical” indicators that will tell you what to do and when to do it. Price action is great because you can form decisions about future outcomes and direction with greater accuracy and speed than any other trading method because price action is the most current market analysis tool there is. Eventually your brain and subconscious will sync up together and trading off pure price action setups will be like riding a bike; once you adapt to it you will be able to ride it very well and it will become like second nature. Price action is the most clean and logical way to analyze and trade the forex market, learn to trade off price action sooner rather than later if you want to get your trading on the right track. Trading with no indicators…. or…….Naked Forex Trading. Welcome Traders! Today’s article is going to be focused on Naked Forex Trading ! Naked? No not me, don’t worry! I mean the charts! This means that the charts will have no indicators on them what so ever! You can trade forex without indicators! We also have training for the ADX Indicator. No indicators? As in zero?

Yes 0. We will show you how everyone can trade with no indicators so make sure to print out this article and ready anytime! We are sure you can find this unbelievable simple forex trading strategy no indicators. The Crucial Trick of Naked Forex Trading. First of all, a question for YOU: do you use indicators? And if so which ones? And if not, tell us why? Please leave a note down below in the comment section! Thanks! The crucial trick is plain and simple price action and chart patterns. Forex trading is not an easy endeavor but it can be straightforward. Taking off the indicators and actually analyzing price action and chart patterns makes the trading process, Forex analysis, and Forex trading a lot simpler. Also read The Benefits and Danger of Online Forex Trading.

Mind you that some indicators do have added value. But, of course, only if you have sufficient experience with that particular tool. What often happens to many newer traders is that they solely rely or try to rely on one or two indicators or two dozens of them. The problem with that is – in a way – the attitude: the hunt for the holy grail or the magic trade that will make all the correct decisions at the right time. Forget that utopia. NO, I am not saying that you cannot use any Fibs, YES, of course, you can. Fibs are great. As we discussed last week in the article named “the Fibonacci Mystery: More Than Just Math.” I would not want to trade without them. You can even use other tools as well. But what I am saying is this: learn to read patterns and actually see the charts. Learn to read price action signals. If one focuses only on indicators, you will never see the obvious. Practice this art and you will see that Forex trading using no indicators works just as well. Or you will at least be able to reduce it to the basics such as Fibs, divergence, and a moving average. Here is another article on forex trading advice and trade example.

How to Become a Trader. To summarize a plan of action I recommend doing this: start to observe price action. Minimize your indicators to a couple at max. Or nothing at all when doing this training. Then look at the market. See its breath. Hear it talk. Feel it move. When a trader looks long enough at the charts, they start to build up intuition. I know it sounds very “zen” like. But if you like at the charts often enough, you will see the impulse in the market. You will see its behavior and get to know the currency’s character. You will start to see energy and momentum in the charts. The best traders observe small little clues that seem meaningless to others but remind the chart watcher of imminent danger and opportunity. Or remind them of previous experiences that help aid the current analysis and decision-making process. The best traders are in rhythm with the market.

The market makes impulses, corrections, then again impulse, correction, impulse, correction, etc. On and on. This is the heartbeat of the market. So if this pattern is the basic mechanism of the market, why not capitalize on it? The answer is: yes we should! That is why learning to practice trading without any indicators is a good practice! Forex trading using chart patterns and price action signals is tremendously powerful. There are a ton of links on price action at the Winners Edge Trading website so we will focus this article more on Forex trading with chart patterns. Check out these links: “Forex trading strategies” “Why Japanese candlestick charts are so important to your trading arsenal” “What are the most common Forex price patterns” “The pinbar magic” “Behind the Forex candles” “The Bullish Morning Star Pattern” Chart patterns are an awesome method of identifying great trades! Why? Patterns are so great simply because they mark the start and end of a correction. But also mark the start and end of an impulse! And the impulse is the gravy of Forex trading. Impulses are great because Forex trader reaches their profits and their take profit targets quickly without too much hassle and sideways chop. And because impulses are more easily identified and caught in trends than in ranges, Forex traders usually to focus primarily on trading trends. And that makes sense. Trends have many price action areas with impulses. That is why trading with the trend is so important to Forex traders. But in fact trading with the impulse is the real name of the games.

We can use chart patterns for various reasons: a) To identify consolidation zones or corrective price action; b) To predict future movements; c) Most importantly to spot great Forex trading opportunities. Chart patterns help us with identifying corrective periods. But they also aid Forex traders because we have clear boundaries when the chart pattern corrective mode has ended and when most likely the impulse starts. That is why trading breakouts are such a great, if not the best, the method for trading using no indicators. Read more vital information on that here: 1) “Trading breakouts real or false” 2) “Simple Forex trading: impulsive moves” Anyhow, let’s talk about the patterns. There are tons of different chart patterns. Here is a list: a) Bear flag: bear flag break is a high likelihood upside continuation trade. b) Bull flag: bull flag break is a high likelihood upside continuation trade. c) Contracting wedge: space is getting smaller between 2 trend lines, continuation trade in the same direction of the trend. d) Expanding Wedge: space is getting wider between 2 trend lines. e) Descending Wedge: space is getting smaller between trendline and horizontal line, continuation trade to downside likely. f) Ascending Wedge: space is getting smaller between trendline and horizontal line, continuation trade to upside likely. g) Triangle: space is getting smaller between 2 trend lines, continuation trade in the same direction of the trend. h) Pennant: space is getting smaller between 2 trend lines, continuation trade in the same direction of the trend.

i) Head and shoulders: reversal pattern. The uptrend is weakening, potential downside. j) Inverse head and shoulders: reversal pattern. The downtrend is weakening, potential upside. k) Rectangles: continuation trade in the same direction of the trend is likely. l) Flats, ranges, sideways zones: continuation trade in the same direction of the trend is likely. As you can see, there are tons of them. And just in case you didn’t know this: the market is communicating with you through these patterns! You just need to learn the language ?? and you will see tons of opportunities.

On any time frame. Examples Let’s give some real life practical examples of Forex trading with chart patterns! As you see in these charts, a Forex trader can accomplish a ton of analysis with just simple chart pattern recognition. Simple as that. A triangle usually breaks in the same direction as the impulse prior to the triangle. So downside and then a triangle is usually followed by a continuation lower. An (inverse) head and shoulders pattern are a reversal sign. Of course, it does take a trained eye to capitalizing on them. That is why paper trading and back testing will always remain vital elements for the trader. We must practice, practice, practice… and then practice even more. A Forex tool that you definitely want to your disposal is the ability to capitalize on Forex chart patterns. They happen so often and so regularly that you really want to make sure you are well equipped for that. In the Live Trading Room of Winners Edge Trading, we are always on the lookout for breakout trades! If you feel that you need more guidance on trading breakouts and trading chart patterns, don’t hesitate to look at our trading room where you can get the guidance you need with regard to entries, exits and take profits, trading psychology, risk & money management, etc. In our room, we do use a couple of indicators, like Fibs.

And you will see how we are able to identify breakouts, and how we filter out bad setups. Important I am going to give you some homework! ?? I want everyone to come back here to this article during the weekend and post 1 chart with at least 3 different chart patterns! Boys and girls, we must practice becoming excellent traders ?? Please take this exercise seriously. See it this way: if you take this small step, then you have just proven that you are willing to do the work needed to become a Forex trader . I look forward to your posts! Oh and don’t forget to let us know your answer to this question for YOU: do you practice naked forex tradingtrading using no indicators ? And if so which ones? And if not, tell us why? Please leave a note down below in the comment section! Also, please give this topic a 5 star if you enjoyed it! ( 1 votes, average: 5.00 out of 5) Learn to Trade Forex Without Indicators. Learn to Trade Forex Without Indicators. The green arrows indicate possible entries (in the screenshot). Forex has been in existence learn to trade forex without indicators since the 70s of the XX century.

trend traders price channel channel trend trader Metatrader macd psar moving average Stochastic Donchian Channel indicator The RobotFX MACD expert advisor ideology is meant for the traders that are familiar and use the moving average convergence divergence (MACD) indicator in their trading decisions. The Hot forex signals will not liable for this situation. Automated Forex Trading. The next day the price of gold increased. Ahead of unexpected news releases. I will lose. Stochastic Relative Strength. ATR method for filtering entries and avoiding price whipsaws. Drag learn to trade forex without indicators n Drop, One Click Trading. cong ty forex toan cau lua dao You know that forex market is the ocean of the uncertainty and no one can provide you 100% efficiency in their trade. Red LightGreen Light system identifies trends. How to Start Trading Stock Options Then you can simply switch charts to see the arrow and trade in action! This Metatrader expert advisor is very similar to the Fluid expert advisor by the fact that its main functions are the same. Supportforexreversal.

learn to trade forex without indicators forex trading courses in mumbai. It is a lifetime license, with no recurring costs. Hedges the zone recovery or with the trend for the losing trades (a regular stoploss can also be used) To trade using the expert advisor as it was designed to do, the trader must first choose an option for the EA to establish the trend. The Best Stocks Charting Software to help you manage your own IRA or 401k. Following the trend, the EA sells when the MACD main line drops below the signal line and it buys when the main crosses the signal, up. Learn to trade forex without indicators. about 6 hours ago by Forex Ninja. Heads up, system traders! I’ve rounded up the SEVEN mechanical forex strategies right here to see how they stack up against each other. HLHB Trend-Catcher System Update (Aug 20-24) about 9 hours ago by Hucklekiwi Pip. Another positive week for the HLHB System! Thanks to strong dollar trends, this trend-catcher was able to bag an additional 201 pips. Woot! Woot!

Week In Review At The Happy Hunter’s Lodge (August 20 – 24) The Daily Hunt With The Happy Hunter Trading System (Aug. 24) 3 Ways to Help You Take Demo Forex Trading Seriously. USD Weekly Review (August 20-24) CAD Weekly Review (August 20-24) The Daily Hunt With The Happy Hunter Trading System (Aug. 23) GBP Weekly Review (August 20-24) EUR & CHF Weekly Review (August 20-24) JPY Weekly Review (August 20-24) NZD Weekly Review (August 20-24) AUD Weekly Review (August 20-24) Cryptocurrencies Weekly Digest (August 19-24) Featured Contributors. Forex Trading School. New to trading forex? Learn to trade through our online course. Our Trading Community. Ask questions, share trade ideas, discuss markets, and more! Stay on top of market-moving events and data releases with our news calendar. Partner Center Find a Broker. Recent Forum Activity. Discuss your market views with other traders. 13 Views 0 Replies. 363 Views 6 Replies.

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Trading Insights & Analysis. HLHB Trend-Catcher System Update (Aug 20-24) about 9 hours ago by Hucklekiwi Pip. Another positive week for the HLHB System! Thanks to strong dollar trends, this trend-catcher was able to bag an additional 201 pips. Woot! Woot! Week In Review At The Happy Hunter’s Lodge (August 20 – 24) The trading week is done and a new one will soon begin, which means that it’s time to take stock of how the two Variants of the Happy Hunter Price Action Trading System fared this past week. The Daily Hunt With The Happy Hunter Trading System (Aug. 24) Volatility picked up during the later half of the day. And thankfully, both Variants were able to score a couple of wins, allowing both Variants to recover a bit from the heavy losses sustained on August 23. 3 Ways to Help You Take Demo Forex Trading Seriously. Some forex traders tend to take demo trading less seriously since there’s no real money on the line. Here are some exercises to help you stay focused. The Daily Hunt With The Happy Hunter Trading System (Aug. 23) Trading conditions were really bad on August 23, so the hits just kept on coming. The Fixed TP Variant, in particular, is now in danger of entering negative territory.

So sad! Chart Art: Long-Term Setups on USDCAD and EURJPY. It’s Friyay, yo! I’ve spotted forex trade opportunities on USDCAD and EURJPY that should set you up over the next couple of days. Check them out while they’re hot! Trade Adjustment: Downtrend Momentum In AUDCAD. Lots of movement in AUDCAD since entering short at market last week, so it’s time to adjust the plan to hopefully maximize my potential gains if downtrend momentum picks up again. The Daily Hunt With The Happy Hunter Trading System (Aug. 22) Trading conditions deteriorated even further on August 22. And this time, both Variants were forced to return some of their hard-won gains. Boo hoo! Intraday Charts Update: Triangles On CADJPY & NZDJPY. Wassup, dawg! If you’re a breakout chartist and you’re lookin’ for short-term setups on the yen, then I’ve got yo fix ‘coz I’m serving up a couple of triangles in today’s intraday charts update. Short-Term Bollinger Reversion Strategy 2.0 (Aug. 17 – 23) It was another mixed run for this strategy, but it managed to catch a full win on one of the pairs. Check out the latest signals! Trade Closed: NZDCHF Range Support Breakdown. Stopped out on a pullback!

But it’s all good as my adjusted stop loss was able to lock in more than a hundred pips with this early exit. Chart Art: Trend and Range Setups on USDCHF and NZDUSD. Whether you like trading trends or ranges, I got yo back with these sweet forex setups on USDCHF and NZDUSD. Check them out, yo! Importance of Flexibility in Forex Trading. A mistake many forex traders make is to forget to assess what type of market they are working with and adjust their approach accordingly. Cowabunga System Daily Update: Keep Losses Small And Your Wins Big! It’s important to minimize your losses and maximize your wins. Today was a perfect example of that principle. See how it all went down in today’s Cowabunga Surf Report. The Daily Hunt With The Happy Hunter Trading System (Aug. 21) Trading conditions on August 21 were still rather unfavorable. Even so, the Fixed TP Variant recovered from its recent slide and is now up by 4.39% for the month. As for the Trailing Variant, well, it held onto its gains at least. Procrastination is the art of keeping up with yesterday.

Don Marquis. BabyPips. com helps individual traders learn how to trade the forex market. We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.



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