Best Education Forex - Throw Out Your Indicators!

By John Templeton

You want to know what the best education a forex trader can have? It's the moment when they clear out their charts of all the indicators that they normally trade with. You heard me right. I want you to completely get rid of everything that is on your trading charts. This means stochastics, MACD, RSI, Moving Averages, and whatever else you are using.

I want you to be looking at nothing but a plain bar chart or candlestick chart. This may sound completely insane to many people. But you want to know what I think is insane? I think it's insane that people use indicators to interpret to them what the market is doing? Why in the world would you follow some formula that's basically telling you what has already happened in the market? Instead of having the market interpreted for you, why don't you just learn the language? And that language is price action.

I am always amazed when I read on a forex forum about a trader coming up with a system that used 5 stochastics, 10 different moving averages, 3 RSI indicators, and he always says "I've just come up with the holy grail" WHAT?!?! He thinks by throwing enough indicators on a chart and seeing some coherence between the indicators that he can predict where the price is going to go. Does this strike as you as the best education you'll find in forex trading.

That same person, if asked WHY is the price moving a certain way, he wouldn't have the slightest clue. He would basically say "that all the blue lines are above 80". I'm guessing George Soros doesn't quite look at the market in the same way. I cannot stress enough the importance of cleaning up your charts and listening to what the markets are telling you. When you can explain the reason as to why currency is going up or down, then you know you are a real trader.

John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He has created his own forex education course called Trading in the buff.