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Thursday, September 18, 2008

Trading Without Indicators - What's the Secret?

By Jon Ferraro

When most people hear that somebody is trading the forex markets without any indicators, there is an instant look of confusion that comes across the face. To them it sounds like driving with a blindfold on, But as a matter of fact, its the exact opposite.

Most people that trade without indicators have the same reaction to those traders who need 20 indicators on their charts in order for the pull the trigger on a trade. They look at the mass of indicators as if they were blocking their view of what's actually going on.

Trading without indicators has been around as long as the markets have. They call it price action. It's all done by the trader looking at the chart and understanding how the current movements of the price, compared to past movements, can be used to forecast future prices. In other words, everything we need to know, is right in front of us. There is no need to block our view with needless indicators.

For example there are certain patterns in the forex markets (actually all markets) that can be repeated on a constant basis. They are predictive in nature, as opposed to indicators like and RSI or MACD which are always lagging. They are only telling us what has already happened. Anybody can be a millionaire if they only tell you what has happened already. The real skill is using past information to make an informed decision about what the future holds. Trading without indicators is as close as we'll ever get to becoming a forex psychic.


Click Here to see what I used to learn how to trade forex without indicators.

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