New traders get really envious when they hear more experienced traders mention that they only trade with price action. They don't use any kind of indicators on their charts to help them make a trading decision. Most newbies don't believe them.
I could see why they would have that kind of reaction. After all, it's quite obvious that most new traders start learning the ABCs of trading by playing around with indicators such as trading when moving averages cross each other or looking for divergence within the MACD.
But many just don't take it to the next level to see what kind of trading can be done with naked charts (no indicators). They kind of become indicator dependent.. What many don't realize is that no indicator can beat the knowledge of price movement.
Price movement is the direct link of showing us what has happened and what should be happening next.
For instance, I know many people use those custom indicators to supposedly tell them where the support and resistance lines are on a chart. Sure, sometimes they may be right. But don't you find them to be a little random? I mean, after all, all it's doing is using the same formula over and over again. Do you think that the markets are that simple to figure out? I don't.
If you were to look at past price action to see where trends stop, or at least struggle to break through, you will notice that most of these instances have a lot in common.
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