Forex Tutorial
June 1, 2017

How To Trade With a Naked Chart

I don’t use what I call “indicators”, at all, but I do draw horizontal lines representing my impression of recent support and resistance, and I wouldn’t want to trade without them.

They’re “indicative of my perception of recent support and resistance”, though, so I suppose some people might call them “indicators“?

I don’t know what you mean by “tools”, though. Perhaps you’d like to clarify that? The chart itself is a “tool”, isn’t it? Maybe you’re thinking of things like pivot points or Fibonacci levels, when you say “tools”, to differentiate those from the things that people are clearly agreed are “indicators” like MACD, RSI and so on? I don’t use pivot points or Fibonacci levels, either, myself. I’ve never seen any non-anecdotal evidence that they’re any more reliable or significant than randomly drawn lines. And all the objective, independent studies I’ve read that have actively looked for any such evidence have failed to find it at all. (Randomly drawn lines can easily be made to look like really reliable tools/indicators, though, so perhaps that’s not a great surprise!)

The things I trade (without indicators at all) are reliable bar patterns such as 1-2-3 formations, Ross Hooks, Slaughterbeck entries, “long bomb” entries, and so on.

 

thank you for your interest to discuss with me about it.

after many years i try to understand how market go. i finally realize that market is not follow us. but u must follow the market.
i try to learn elliot wave, harmonic pattern, boilinger band, moving average, divergent, fractal , support resistance and ect.
but it wont work. lastly, i see what is market doing.

just detect where the market want to u-turn then u follow until the end of it.

even i now understand where the market want to go still i use draw a trendline to detect where is exactly and when market is change..
then wait for entry. then entry, and entry, entry again.. till market change again.

(I’m guessing you intended to say “doesn’t provide much more success than indicators”? And replying on that basis …)

I strongly suspect the evidence is against you, there, actually.

This is one of those “forex issues” on which there are two very distinct consensuses of opinion: one among “aspiring forex traders” and perhaps similarly among “forex traders in general”, and a very different, perhaps even an opposite one, among “forex traders who are making a living“.

I’m perhaps biased, as perhaps we all are, one way or another, on this subject: I’m one of the people whose forex trading became consistently profitable only after I learned to abandon indicators altogether.

But it seems to me that the key point, in this context, is that almost all the people trading, like myself, from “naked charts” are people who have previously been through less successful phases of trading (typically, I suspect, far less successful phases of trading), and have eventually found sustainable profitability only by understanding price action – which is much more easily done when one dispenses with indicators. That more or less doesn’t apply at all, the other way round, for the obvious reason that almost nobody (apart from some institutional, professional, graduate/postgraduate trainees, perhaps – but they don’t post here) first learns to trade without indicators, so in reality one doesn’t find people who made “an opposite journey”.

Just my perspective, on a subject about which – in an online trading forum – there will never be widespread agreement, or even anything approaching it … but please excuse my mentioning that I think your assertion above is actually a mistaken one, the reality being that “no indicators” tends to perform a lot better than “indicators”, partly because it’s used by different people whose understandings and experiences are different – and there are reasons for that.

This is so sad that to a regular trader the only thing that stays is “to follow the market”.
But there are great traders, who actually moves the market!
They are heavy in money matter, but, I guess, they also have been starting some day from a little.
So, potentially, everyone can in some future not just follow the market, but move it!

(Just little motivational post. Hard day today )

I find the exact opposite.

As so many others (including all the people who taught me, and the people who wrote the forex-trading textbooks I found so valuable and helpful) found, it was only when I (eventually) learned to abandon indicators and develop an understanding of pure price action that my trading became steadily and consistently profitable and I was able to make a reliable living from it.

Indicators are derived from previous prices and for me they don’t have enough predictive value to be helpful at all. It was only really when I started understanding the reasons for that, that my “real trading education” began.

CONVERSATIONS