Many beginning traders have had challenges with their profitability. After trying nearly every indicator under the sun there are those who are wondering how to trade Forex without using indicators. This is definitely possible, profitable, and much easier to learn than you think.
No indicator Forex trading is nothing new, it is just that it has gained popularity over the last number of years. Most of this newfound popularity came about because of the difficulty that new traders were having making profits with standard indicators. The challenge, of course, is not so much with the indicator itself, but with the use of indicators. Just to set the record straight indicators are not evil they are simply a tool. As it is with all tools we must use good judgment to select the right tool for the job. If we select the wrong tool then it would not be logical to think that we will receive positive results. With that said let's get onto how to trade Forex without using indicators.
One of the most common ways to trade Forex without using indicators is by using candlestick charts. Technically candlesticks could be considered to be an indicator as they are a visual aid on the chart designed to help traders make trading decisions. For our purposes let's simply consider using candlesticks as trading without indicators.
In order to use candlesticks effectively it is necessary to understand not only the different candlestick formations, but the patterns formed by combinations of candlesticks. Every candlestick chart contains a wealth of information. At a glance a trader can see trend momentum, range bound markets, as well as trend exhaustion, etc. There is a small learning curve involved with using candlesticks, but in the long run you'll find it well worth it.
In order to effectively learn how to trade Forex without using indicators you will need to find price action which leads to profits. You can find effective price patterns simply by observing your favorite currency pairs movements in Forex charts. Your objective is to find price patterns which have a good probability of producing profits. Once you've done this it can be a simple matter of observing and taking actions whenever these price patterns recur.
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