Some traders have probably never heard of price action, while others that have, think that it is almost impossible to figure out. Actually, trading price action is about a million times easier than what most struggling traders are using, right now. How could it not be? You are getting rid of all the garbage that you have on you charts.
First off, I am getting ahead of myself. For people that don't know what trading price action even means, it just means that you are trading with no indicators.
For instance a lot of people like to trade with indicators such as stochastics. They'll take trades based on what this indicator is telling them. So instead of using their own eyes to see what the market is going to do, the indicator is going to tell them, instead.
There are folks who absolutely flood their chart with this kind of stuff. If you didn't know any better, you'd think you were looking at a video game with all the different colors and lines that are on the chart. How in the world could somebody trade like that?
That's why it always surprises me to hear people saying that trading price action is more complicated than using indicators. How could that be? You have gotten rid of all this noise that is on your charts, and you can actually focus on what the price is doing.
To make a comparison, using indicators, is like trying to read a book at construction site. It's so loud and busy, how could you really concentrate? On the other hand trading without indicators is like trying to read a book at a library. It's quiet and you can focus on your book.
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. |
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