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Trading Without Indicators: Focusing on Price Action

By removing indicators from the chart, traders who engage in trading without indicators can focus solely on the price movement itself. Trading without indicators, often referred to as Naked Trading, is a forex trading technique based on observing price movements alone, without using any technical indicators on the chart. What are the advantages? How does trading without indicators work? Let's discuss in more detail.

Advantages of Trading Without Indicators

If a trader can be likened to a makeup enthusiast, then indicators are the makeup tools that are always tried every time a new tool is discovered. Some traders experiment or choose which indicators to use to optimize their trading systems. However, using too many indicators does not necessarily mean greater profits. On the contrary, the use of too many indicators can make the chart too complicated and difficult to analyze accurately. In this case, trading without indicators becomes a better alternative. Instead of struggling to find indicators that suit your trading style, why not learn Price Action and Price Patterns alone? Additionally, candlestick patterns can also support trading without indicators.

The market, whether bullish or bearish, is essentially determined by price, not by indicators. Similarly, whether a trader will make a profit or incur a loss also depends on the price. By removing indicators from the chart, traders can focus on the price movement itself. Although not all traders can do it, many traders are able to successfully trade without indicators.

How to Trade Without Indicators

Here are some steps to trade without indicators:

  1. Identify Swing High/Swing Low: Swings are reversal points on the chart consisting of High and Low levels around Support and Resistance. Identifying swings can help you understand market conditions.
  2. Define the Current Market Condition: Based on the identified swings, you can define the current market condition, whether it's uptrend, downtrend, or ranging.
  3. Decide Whether to Trade or Not: After understanding the market condition, you can decide whether to trade or not.
  4. Identify Reversal and Correction Points: In trending market conditions, you can try to enter the market when the price experiences corrections from the main trend.
  5. Wait for Trading Signals to Appear: Wait until clear trading signals appear, such as candlestick formations indicating reversal or breakout.
  6. Develop a Trading Plan: Write down your trading steps and patterns you know as trading signals, as well as your risk management plan.
  7. Keep a Cool Head: Always maintain emotional control in your trading decision-making and don't get caught up in the illusion of unclear price movements.

Trading without indicators allows traders to focus on the price movement itself and avoid confusion due to too many indicators on the chart. Although it requires strong analytical skills and good emotional control, trading without indicators can be a profitable choice for some traders. By understanding and following the steps above, you can try trading without indicators and see if this method suits your trading style.


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