It appears to me that every time a new trader wants to learn about what it takes to trade the forex marker, they will usually spend all their time scouring the internet to and learn about using indicators like stochastics, MACD, moving averages as well as the other common ones.
What they do next is cover their charts with as many of these lagging indicators that they can find. Believe it or not, trading price action is something that doesnt even come to their mind. A lot of this has to do with the fact that there are many traders who cant decipher what the market is telling them without having to look at these generic indicators. They have no way of knowing which way the market is headed.
When you trade with indicators, its somewhat like trading with other peoples signals. All you are doing is hoping that they are right. You dont really understand the underlying reason why you are taking the trades that you are, you just hope that their opinion is correct, (or for an indicator, their formula.)
Thats what is so perfect about price action. Finally you get to eliminate all the needless clutter that is on your charts, and you can finally read and understand the market, the way it was intended: without having to use a single indicator.
Many times when traders use indicators, one of the biggest hiccups for them is when two separate indicators are giving opposing signals. For example, the MACD could be signaling a buy, while the Stochastics are signaling a sell.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
Im sure you can see why this would be an uncomfortable position for a trader to be in. All they are doing is waiting for a couple of random lines to match in the same direction in order to take a trade. The sad thing is that most traders dont even know what these lines represent.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23309
What they do next is cover their charts with as many of these lagging indicators that they can find. Believe it or not, trading price action is something that doesnt even come to their mind. A lot of this has to do with the fact that there are many traders who cant decipher what the market is telling them without having to look at these generic indicators. They have no way of knowing which way the market is headed.
When you trade with indicators, its somewhat like trading with other peoples signals. All you are doing is hoping that they are right. You dont really understand the underlying reason why you are taking the trades that you are, you just hope that their opinion is correct, (or for an indicator, their formula.)
Thats what is so perfect about price action. Finally you get to eliminate all the needless clutter that is on your charts, and you can finally read and understand the market, the way it was intended: without having to use a single indicator.
Many times when traders use indicators, one of the biggest hiccups for them is when two separate indicators are giving opposing signals. For example, the MACD could be signaling a buy, while the Stochastics are signaling a sell.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
Im sure you can see why this would be an uncomfortable position for a trader to be in. All they are doing is waiting for a couple of random lines to match in the same direction in order to take a trade. The sad thing is that most traders dont even know what these lines represent.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23309
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