What Happens When You Finally Start Trading Forex Without Indicators?

It seems like the moment a new forex trader starts off his/her trading career, the first thing they do is just blast their charts with every single indicator that their charting platform carries. I know that's what I did when I first started trading. I look back at that now, and wonder how in the world could I even tell what I was looking at? The entire chart was nothing but lines, shapes, colors, graphs, oh my!!

The day that you can trade forex without indicators is the day that you can finally say "I get it now!"

If there is one thing I have learned in my trading career, it's this: The worst thing you can have when trading is too many opinions, and that's exactly what you get when you use indicators.

You've got an MACD saying buy, you've got Stochastics saying sell, you've got moving averages saying buy, and you've got RSI saying sell. How could this not drive you completely nuts??? It's like a severe case of multiple trading disorder. In your ear, these indicators are saying "don't listen to the other one, I know which way the market is headed."

The truth is none of them know where the market is headed. These indicators are both lagging and completely random. All it is, is just a static formula that's being used irregardless of market conditions.

The real truth can be found in price action. There are no formulas involved. It's just a simple case of both seeing and understanding the market. Once you do, you can really see the power of what a simple bar chart can provide.

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Trade Forex Without Indicators

If you are planning to do forex trading, there are many ways to go about doing this. Where most people fail is that they being trading with lots of indicators.  Their charts are filled with them, and traders are just hoping for the best.  If you are one of those traders who want to think outside the box and trade forex without indicators, then I want to applaud you. 

If you want to do this, then you are going to have to understand price action. Price action is the backbone of technical analysis.

Begin by opening up your forex charting platform, pull up your favorite currency pair, then choose a bar or candlestick chart.  I implore you to fight that urge to put indicators on your chart.  This can be difficult if you have been trained to think that you HAVE TO use them.

After this, come the tricky part.  You have to just simply watch the price.  (Remember, we are thinking outside the box).  Focus on when the market is at its most explosive.  If you do this right, there is something that should really stick out:  After these kind of volatile moves, the market will retrace back to a common support and resistance area.

If you don't see it right away, don't worry.  Price action is just something that takes some getting used to.  The more you try it out, the clearer it will look to you.  Remember that Rome wasn't built in a day.  You've got a long run ahead of you.

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Trade Forex Without Indicators and See What You've Been Missing

Why is it from the moment a new forex trader (I was guilty of this as well) first starts trading the market he/she instantly covers their charts with every possible indicator known to man? It's like a sea of lines and colors. We block the charts so badly that it's hard to even tell what the price of the currency is! Nobody could possibly make sense of all that. The moment somebody learns to trade forex without indicators, is the moment they can say "I understand the market".

When we are first learning to trade, the last thing that we need is clutter, and that's exactly what indicators provide. Instead of congesting the charts with indicators that we don't even understand what they mean, we should be seeing the market at its purest form.

If you follow the forex market without any indicators in your chart long enough, you'll notice something interesting. There are patterns that get repeated over and over again. You just have to know what you're looking for.

The problem that most new traders have is that they have been programmed to believing that they can't read a chart without indicators. They have been told that most traders have to use moving averages, MACD, etc... in order to be successful. Well, most traders who trade forex end up losing money. In fact, it's not even close. The vast majority of the people who start trading forex (95%) will lose money. So if that's the case, why would you want to the same thing that everybody else does?

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What Happens When You Finally Start Trading Forex Without Indicators?

It seems like the moment a new forex trader starts off his/her trading career, the first thing they do is just blast their charts with every single indicator that their charting platform carries. I know that's what I did when I first started trading. I look back at that now, and wonder how in the world could I even tell what I was looking at? The entire chart was nothing but lines, shapes, colors, graphs, oh my!!

The day that you can trade forex without indicators is the day that you can finally say "I get it now!"

If there is one thing I have learned in my trading career, it's this: The worst thing you can have when trading is too many opinions, and that's exactly what you get when you use indicators.

You've got an MACD saying buy, you've got Stochastics saying sell, you've got moving averages saying buy, and you've got RSI saying sell. How could this not drive you completely nuts??? It's like a severe case of multiple trading disorder. In your ear, these indicators are saying "don't listen to the other one, I know which way the market is headed."

The truth is none of them know where the market is headed. These indicators are both lagging and completely random. All it is, is just a static formula that's being used irregardless of market conditions.

The real truth can be found in price action. There are no formulas involved. It's just a simple case of both seeing and understanding the market. Once you do, you can really see the power of what a simple bar chart can provide.

Read more...