Have you ever considered if forex trading is possible without indicators? If so, how come motivated and enthusiastic traders today? Ultimately, is this trading better than indicator trading?
First, in recent years, especially on the Internet, forex trading has become a very popular online occupation and even the main source of income for some. Many aspiring Forex traders have discovered new strategies, tools, and ways to enhance their success in the dynamic market.
Undoubtedly, forex trading without indicators represents one of those ways that a part of the professionals in this industry choose to follow. So what does it mean and how beneficial is it to use forex trading without indicators? Let’s find out more about this interesting topic, shall we?
What is Forex trading without indicators exactly?
Regardless of your trading experience, first of all, you need to understand that it is possible to trade Forex without indicators. It refers to a specific way of exchanging currencies in the Forex market without relying on technical indicators. In other words, trading without indicators means that traders rely exclusively on the price movement of the currency pair.
Trading Forex without indicators is also known as “Naked Forex Trading”. Like nudes, traders do not make decisions based on future price movement. Instead, Forex traders make decisions in correlation with current conditions in the forex market.
No demand for indicators
We can define indicatorless forex trading as a particular technique in which traders in the market use price action to decide the right time to exit or enter positions. In this type of trading, there is no demand for various indicators such as stochastic oscillators or moving averages.
The price is enough to decide the strength of the market and the right time to buy or sell in the forex market.
Understanding the Forex market is essential.
This type of trading requires a deep understanding and knowledge of the forex market that trades 5.5 days a week, non-stop. Any trader who wants to try some Forex trading strategies without indicators should first learn more about price charts, market patterns, and trends.
It is vital to understand how powerful it is for a trader to know the movement of the Forex market and how it works. Since it works in cycles, traders need to understand that there are typical patterns:
- range of ups and downs
- Upward trend
- Downward trend
Once a Forex trader is eligible to understand how the market cycle works, they will be 100% ready to trade Forex without indicators and will know when the perfect time to do so is. What turns out to be the crucial factor in recognizing it is trading with the trends in the first place.
Why do traders choose to trade without indicators?
The first question that many would ask before embarking on this Forex trade without indicators is, why do it? Why do so many Forex enthusiasts decide on such a thing in the first place? First, they do it because they are eager to trade quickly. Without indicators, the process will be extremely faster, as trading with indicators only takes a couple of hours to set up.
While it is difficult to determine the best settings, the indicators are also very difficult to use and need to be clarified. Price action trading is a much simpler solution for newbies to the Forex industry. If they learn to trade the forex market, they could start doing it almost immediately.
Once you are trading price action, there is no need for any indicators or to use trend lines and a moving average. Instead, price action trading is quick and simple to understand.
It is very similar to swing trading.
One of the most interesting things about trading Forex without indicators is that it is just like swing trading. It is extremely effective, fast and does not require any indicators. What is also crucial to remember is that it is all about reacting appropriately and reading price action like a true professional.
Focused on one technique
There are other reasons to trade Forex without indicators, such as:
- Using a minimalist approach
- Focus solely on one Forex trading technique instead of relying on numerous indicators with various settings.
Also, it is important to note that some traders believe that trading without indicators is risky and unpredictable. However, it is only true for those who need help understanding how the forex market works.
Those who are true professionals in the Forex industry will know how trading without indicators is beneficial for them.
What are the main benefits of trading Forex without indicators?
As some traders know, there are numerous benefits to trading without indicators in the forex market. For those who don’t already know, here are just a few of these benefits to be aware of:
- Help trade Forex to practice and improve your reading skills
- We are allowing a more effective understanding of the market before using any other advanced analysis and trading techniques.
- It helps to discover the importance of checking the price action in the first place.
- The trading process is much easier and simpler, since it is not complicated to process the data of the real moment.
- Elimination of the usual distractions in indicator trading.
- I am focusing solely on live price action.
- All business decisions are made much faster, which means big amounts of data don’t turn them off.
The disadvantage of trading Forex without indicators
On the other hand, there are disadvantages to trading without indicators. In this case, we must have a wealth of trading experience to trade properly and successfully. Traders must possess a certain level of knowledge and understanding of the Forex industry, especially to recognize real time cycles and market movements.
For those who trade with indicators, it is crucial to have the patience to fully understand and learn how to best trade without them. The key in these situations is to learn to identify price signals and trust various chart patterns.
Simple step by step guide on how to trade Forex without indicators
If you are in the mood to learn how to trade Forex without indicators in the most efficient way, these are all the simple steps you need to follow:
- Read and understand market structure like a pro: includes identifying and classifying trend structure.
- Learn how to identify likely turning points – It is recommended that traders use simple support and resistance analysis.
- Be patient and wait for a trading signal.
In summary, this simple guide is vital to deeply understand and use:
- Market structure
- Identification of inflection points
- Waiting for a trading signal.
Different ways to trade without indicators
There are different ways to trade without indicators. It is done as follows:
- candlestick patterns
- chart patterns
- Supply and demand zones
- Support and resistance levels
All traders eager to successfully trade without indicators in the Forex market should write down all these steps and try to complete them. Experts recommend writing a checklist to keep track of your Forex trading without indicators.
Do professional Forex traders trade without indicators?
Another frequently asked question in this industry is, do professional Forex traders use Forex trading without indicators? As mentioned above, those who deeply understand how the forex market works, of course, use forex trading without indicators.
However, some traders use price action alone to explore and find valuable trading opportunities in the volatile and dynamic Forex market. It is also crucial to note that what might benefit one type of trader in the Forex industry may mean something more than that, it will be good for the other types as well.
Experts in this field have one thing in common: knowledge of risk management. On top of that, they need to trust all of their trading systems.
Should I trade Forex without indicators?
Ultimately, regardless of their experience in the industry, all Forex traders should know if they should trade without indicators. First, traders who don’t know anything about Forex trading without indicators should learn the basics.
Second, having great self-control when trading without these indicators is vital, as emotions can have a huge impact on performance and overall success. Third, there is a popular saying that “Forex indicators represent you folks.” However, in reality, that is not so much the case.
Indicators generally show traders what is happening now, but do not provide any other instructions or information on the best thing to do next. The only benefit of these indicators is their ease of use to make a good trading decision, but they need to help traders who have chosen a bad strategy.
What are the best Forex trading strategies without indicators?
Since you certainly want to avoid choosing bad Forex trading strategies, we will help you choose the right one without indicators. Here’s what you need to know about these strategies:
- The first strategy is to stick very strictly to risk management.
- The second strategy is to focus on a smaller number of currency pairs, as this reduces losses due to insufficient analysis.
However, remember that only a universal forex trading strategy with indicators and generality could benefit all traders around the world. What works for one seller may not work for another.
That is why it is important to find a strategy that suits your personality and trading style. Good luck trading Forex without indicators like a real pro!
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