Monday, 19 August 2019

Here Is The Way Of Trading Without Indicators

Trading without indicators, or sometimes also called Naked Trading, is a forex trading technique based on observing only price movements, without applying any technical indicators on the chart.

Advantages of Trading Without Indicators
If the trader is likened to junkie makeup, then the indicator is the makeup tool that the trader always wants to try every time he finds new tools. Just to try or pick and choose which one can be used to optimize the trading system is good. As long as you don't stack too many indicators on one chart.

The increasing number of indicators used by traders does not mean that profits will grow. In fact, like a woman with a make up menor, of course it will be less unsightly in the end, even if only in moderation it can be more charming. Likewise, the use of sufficient indicators can help a trader reach the target, but if the chart is filled with indicators so that they are no longer unsightly, traders will no longer be able to get an accurate picture of market conditions.

In this case, trading without indicators is a superior alternative. Instead of bothering to look for indicators that fit your trading style, why not just study Price Action and Price Pattern? Besides these two topics, candlestick patterns can also support trading without indicators.

Both bullish and bearish markets, basically what determines are not indicators, but prices. Similarly, whether a trader will profit or loss also depends on the price. By stripping the indicator of the chart, the trader can focus on the price movement itself. Indeed, not all traders can do it, but not a few traders are able to trade without indicators.

(this article was written by A. Muttaqiena for Seputarforex)

How to trade without indicators
1. Identify Swing High / Swing Low

Swing is the reversal points above the chart which usually consists of High and Low levels that appear around Support and Resistance. Swing identification can be continued by labeling each swing in four categories:

Higher Low (HL)
Higher High (HH)
Lower High (LH)
Lower Low (LL)

2. Define Current Market Conditions

This identification will help you define market conditions. In general, there are three types of market conditions:

Uptrend / Bullish: a series of HH and HL.
Downtrend / Bearish: a series of LL and LH.
Ranging / Sideways / Consolidation: there is no specific swing sequence, and usually patterns such as Wedges, Triangle, Head and Shoulders, and others are formed.
To define this market condition, you don't need indicators at all. Just follow the general rules: A trending market is a market that forms a series of Higher High and Higher Low, or a market that forms a series of Lower Low and Lower High. If HL, HH, LH, and LL cannot be determined easily, it means the possibility of market conditions is ranging or choppy.

3. Decide whether to trade or not

After being able to read market conditions on a chart, you will certainly be able to decide whether to trade or not. In this case, if the market is trending bullish, it can be relatively easy to decide later to buy. Or if the market is bearish, obviously the potential direction of sell can be determined.

However, when the sideways, choppy, or flat conditions are waiting for important News releases, it will be difficult to determine the entry or peg the exit, so you may choose not to trade alone. Although, there are several trading alternatives when market consolidation can be taken if you still want to trade.

(this article was written by A. Muttaqiena for Seputarforex)

3. Identification of Reversal and Correction Points

In trending market conditions, you can try to enter the market when the price is experiencing a correction from the large trend, or in other words, "buy dips in uptrends and sell rallies in downtrends". Or, mark support and resistance levels to be used as a benchmark for reversal and correction.

The use of Support and Resistance levels can also be complemented by an understanding of:

Important candle formations such as Pin Bar, Fakey, and Inside Bar.
Common chart patterns in the forex market
Candlestick patterns
When the levels of Support and Resistance are felt to be less convincing, understanding these three things can help you to trade without indicators.

4. Wait for Trading Signals to appear

The final step is to wait for an executable trading signal to appear. In the way of trading without indicators, the signal is often in the form of a candle formation that indicates a reversal or a breakout.

One of the most popular types of candlestick signals for price action analysis and trading of indicators such as this is to use a pin bar. In addition, there are also Shooting Stars, Hammer Bullish, and Tweezer Top and Bottom, and others.

Also Read : Increase the Profit Probability of Trading

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