Instead, I teach my students to trade off of a plain vanilla price chart by learning to read the forex 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. 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, indicators 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. 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. 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. 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. It is often the exact way or bottom that is showed in examples of these oscillating indicators by people who are trying to sell indicator-based trading systems. 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. 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:. 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 best 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. As we can see in the above two images, the clarity that you get when trading off indicator-free, pure price action chartsis 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. Understanding how the stochastic is formed is one thing, but knowing how it will react in different situations is more important. If they are above this value, the security is considered overbought. 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. From the above two descriptions of the Stochastic and the MACD indicator, we can forex 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. 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. 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. 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 during what was a very strong and vigorous uptrend full of many profitable price action entries. 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. 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. If you end up using some other trading strategy or system, your knowledge forex price action and how to trade it will only make that strategy or system more effective. 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. Hi Nail Cry of joy have over-taking ME seen i started reading your article my trading have seriously changed. I noticed this problem in and since then I only use indicators as a visual aid. I think indicators are a distraction. If you must use them use more stable ones. I just had to let you know that i am an AVID reader of all trade newsletters. I find them not only inspirational but it gives me a wow factor cause your advise is simple and realistic. I was about to give up forex trading until i came across without your archived newsletter covering various topics…i am now glued as i am thoroughly enjoying your simplistic approach to trading which now sounds far more appealing…. God Bless You for sharing all without insights in such a thorough but efficient manner. After bumbling around indicators for years the light is coming over the horizon. I have really taken up your training and after a frenetic year with. I have now stopped trading save for a carefully planned Tuesday or Wednesday poke into the market with a pin bar or fakey if one is there. This is very good stuff for free!! It is easy to follow and appreciate. You deserve your success, and it is apparent you are a good teacher. Actually camarilla indicator draws support and ressistance lines on my chart based on yesterdays highlow and close values. There are only two lines one support red line and one resistance line green line. I have eliminated all indicators and enjoy sucess of trading! But stuck them on anyway! MACD and a leading one RSI. I found them so confusing my brain started to melt! You make trading sound so simple keep up the good work. Excellent article, detail explanation — I didnt know how contrary signals can indicators send in one moment. Your style of trading is clear, your articles are very valuable. Thanks a lot from Best. This technique is superb, i have been developing something similar to your concept and now i just saw the masterpiece completed in your website, thanks alot and keep up the good work…. Thanks for the article. Hi Nail you are a genuiue fx price action teacher who want to help upcoming fx traders like me. The free acticle you sent to me was a great partfinder in the fx worldI will join your paid course soon. I have never liked using indicators but at first I got caught up in them after watching many other traders. Actually now I can understand the real price action within the chart I know that these traders didnt have that much expertise at all. Whenever I see a chart plastered with indicators it makes my stomach flip and I loose all interest is the person, piece of writing that accompanies it. I know exactly how you feel! How important do candlestick formations and patterns become with the lack of indicators? This strategy seems to mesh well with recognizing contained candlesticks and certain types of tails. The focus on simplicity and discipline is great. It has taken me awhile to clear off my indicators, but am feeling whole now with a clean screen. Join LTTTM and learn with like minded traders. Indicators are for people with too much time on their hands who are more interested in the look of their chart than making money. We are forever indebted for your unyielding efforts to help us with our trading careers. Anyway, just bought the course and ready to learn the way I wish to trade, clear PA. Many thanks for this web. I have read and re-read your forex articles and my trading have improved a lot. Thanks a lot Nial. With out a doubt, this has to be the best and most educationally honest forex trading website out there! I have spent time with some industry hedge fund managers and they teach exactly what Nial is teaching you here; the only Nial has made it affordable comapared to paying thousands to attend mentorships with ex-wall st traders. Now with that said, my very own friend has lost trades based on the trading decisions of very prominent traders who are ex-wall street traders. And I can definately confirm that Nial is the most generous when it comes to responding to emails and being dead honest! I have personal experience with exchangin emails with him in which he has saved me alot of money. Keeps my feet on the gound again. Thanks a lot for that. Indicators have robbed a lot of money indicators traders. Market does not trade mathematics, leave alone complicated mathematics. Prices go up and down according to sentiment best this sentiment is translated into candlestick patterns. And Nial has shown the truth of this principle through his price action strategy. Excellent, very well researched article as usual, Nial! Very useful as a reminder not to without our trading. My method of trading involves candlesticks, pivot points, trend-lines where possible and just one EMA, which I use in a similar fashion to yourself. For the past months I have been going through your website and training notes and videos and it is just awesome. I have made some good indicators from what I learn. Hi Nial, I just found you and your website. I jsut want to thanks you for all of your shared experience and hardwork for your job. I think your article way the thing I was looking for because I am so tried of losing money based on the method of using indicators and I was tring to find an indicator to confirm the support and resistance to enter the market. My sterategy is the same you are teaching: But since I put them out I see the market in different view. I think I need some confirmation of something else to enter the market. I guess I can use your method to be successful. Great stuff as always. I am a recent convert to this style of trading and have just found your site. I must say your material is probably the best I have seen. Your lessons are fundamental, basic and esential to form a strong foundation for trading succesfully, thank you very much Nial!! Outstanding presentation of the facts Nial — Thanks. Anyone who does not own your course ought to know they are delaying their trading skills each and every day. Why reduce your chances of success? I like your approach very much. Known I am known with them. Thanks for yet another nugget of wisdom Nial. I have had much more success trading and so much less stress!!! Which keeps the psychological side of my trading in check! It has more than paid for itself tenfold! Keep the lessons coming because no one else is telling it like you Nial! Very well explained Trade. I really enjoy reading your articles and looking forward to joining your course. What really strike me is that as you said indicators are like middleman. If we can by direct from the producers,why not. I rather like what is unfolding before me now as the candle forms and closes then five or more candles down or up the line. I really agree that price action works. And learning to read it although takes a lot of effort but well worth it. Nial material is practical. YOU ARE JUST A GENIUS,THANKS NIAL,I CANT WAIT TO ORDER FOR YOUR COURSE BUT I WANT TO KNOW IF I CAN APPLY THE DAILY TIMEFRAME ANALYSES TO MY INTRADAY TRADING? I USE 1HR AND 4HRS. After going through all the great free content that you give, I decided to take up your discount offer and I am currently sifting through all the course info. Glad to be onboard with price action and not clutter my screen with indicators. Your article is really spot on. As a newbie that exactly what I have observed as well. Some of these indicators only cause you to miss important trades. As soon as I get some money I intend to join your group. Good and insightful article. The best approach the market is first hand data through price Action. Nial keep them coming. Nial,all I can say is thank you. Thats the current chart of EURUSD with bearish signal up there: I agree, much visible onan naked chart… I still use Bollinger bands though, have to get rid of them over time…. I am beginner trader and am reading up on everything I can get my hands on. There are a lot of conflicting messages I can tell you. I like your clean, simple-is-best approach and I like your writing style which is clear and precise with a bit of humour here and there. I find it easy to read your stuff and learn something each time. I am at an early stage in my trading journey but am already getting analysis paralysis. I have burned a fair bit of money in course costs, books and minor trading losses. The biggest problem I am wrestling with is whether to pursue a multi day trading approach with big returns like yours or an intra day scalping approach which suits my small account. I prefer trading daily timeframes as discussed in many of my articles and training. You should explore my content more. I teach tax law for a living and, after many years of experience,I know when I meet a fellow teaching professional, but then, Indicators believe you already know how good you are. Your material is fantastic and you really ought to write a book to include your material. Just one thought, however. Do you see any merit in expanding your material to include fibonacci since I am positive with your skills you could make this minefield more accessible to dummos like me. Nial, i have for a long time believed the very same thing, indicators are useless. Great reading this, it backs up what I already feel and believe, thanks, Frank. Nial your a genuine help to my trading and my thoughts about the market. Without wish I had found your site a long time ago. I am going to join your group later in this month. Hi Yes I was one of the traders with every indicator on the screen that I could fine. Have a great trading day it is very slow at the moment just gone I have removed all my indicators and I can seee the chart way much better I even make the background like yours white. I will order your course very soon …. Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must way aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment way. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Why Trading With Indicators Destroys Forex Trading Success By Nial Fuller in Forex Trading Articles 83 Comments. There is simply no reason to make trading more difficult than it is, but having all these indicators on your charts does exactly that: Clarity… As we can see in the above two images, the clarity that you get when trading off indicator-free, pure price action chartsis very obvious and significant. Now we see the same chart above with only price action: 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. Now I want to hear from you! May 20, at 5: April 19, at 6: March 31, at 7: February 6, at 5: June 10, at November 14, at 1: October 1, at 8: May 27, at 9: January 7, at 9: October 14, at 4: October 14, at September 29, at 4: August 31, at 3: February 23, at January 24, at 5: December 17, at 3: November 3, at Keith from england says: October 13, at 5: September 12, at 4: September 11, at 4: September 2, at 4: July 24, at July 22, at 5: July 22, at May 22, at 3: April 20, at 9: April 14, at 7: April 5, at April 2, at 7: April 2, best 2: Trade 5, at February 24, at 3: February 18, at 3: February 13, at 1: February 10, at 9: February 8, at February 7, at 1: February 7, at February 6, at forex February 6, at 8: February 6, at 4: February 6, at 3: February 5, at February 5, at 6: February 5, at 9: February 5, at 8: February 5, at 7: February 5, at 4: February 5, at 3: February 5, at 2: February 5, at 1: February 4, at February 4, at 9: February 4, at 8: Rick de Nooyer says: February 4, at 7: Leave a Comment Cancel reply Your email address will not be published. Categories Forex Trading Commentary Forex Trading Videos Forex Trading Strategies Forex Trading Articles Trading Lessons Blog Forex Trading Blog Trading Tools. Nial Fuller Learn To Trade Forex Price Action Trading Nial Fuller Reviews Beginners Forex Trading New York Close Charts Forex Broker. Copyright Learn To Trade The Market.
Forex trading without indicators - Very easy, very simple !
Forex trading without indicators - Very easy, very simple !
3 thoughts on “Best way trade forex without indicators”
Adrian Morrison got a grant to spend a month in Italy this summer.
Petersburg to the villages where Stravinsky found inspiration in the earthy power of Russian folk music and dance.
August 12, 2014: Panel denies Pavlov right to present public testimony on behalf of Thumb area residents.