If you want to get a true understand of the forex markets, you're not going to be able to accomplish that with the use of forex lagging indicators.
For example, an MACD indicator may be nice to look at, but can anybody who uses it actually say with great certainty that they have stronger intellectual grasp of the market.
I imagine many people know the rules of how to trade the MACD, but how many can actually proclaim they know what it has to the underlying reason for the price movement? No too many.
While these kind of indicators may seem like a fast way to learn the markets, the truth is you're not really learning anything about the market. You're just using an indicator as a translator. The translator is the indicator interpreting the market and reading it back to you. This may seem like a great thing, but it is doing you a great disservice.
There is no need for a translator. You have to fill those shoes. Let's say you were moving to a Spanish speaking country for a year. Wouldn't you take the time to learn Spanish before you got there? (After all, you're spending an entire year there). I'm sure you can find some body who speaks English there, but do you really think you're going to enjoy the local culture if you never bother to learn the language? Of course not, and it's no different in forex. The only difference is that the language that is needed to be learned is price action.
The first thing you need to do to learn this new language is get rid of all your indicators that you use to trade with. Don't leave a single one. You're only cheating yourself. Then, pick a currency and just watch it for the day.
I know some of you probably think, that doing some like this will not lead to anything great. Well, if you have that attitude, then it probably won't. However, if you have an open mind you'll start to see that price pattern repeat constantly and that can be used to trade the markets.
If you don't believe this is possible, just Google Jesse Livermore. He is a famous stock trader from the early 1900s who was able to become rich just by trading the price action on the market floor. If he could trade price action without even using a chart, you have no excuse.
About the Author:
Want to know about price action? Then start thinking about how trade forex without indicators.
0 comments
Post a Comment