Looking for the best forex technique trading strategies without loss so that profits can always be consistent with no indicators, hopefully our article today can answer what you are looking for. Actually to play forex many ways and strategies, even if we often practice and do our own research with the knowledge we learn.
We will get a trading technique that makes us comfortable because it matches the style of trading itself and the most important thing is always consistent profit. The secret of forex trading is simple / simple without indicators so that this consistent profit can work by trading without emotion. Of course we know the success of trading is 80% emotion and 20% method.
How to Win Trading without Indicators or Naked Trading
What is Naked Trading?
Naked comes from English which in Indonesian means naked or plain or clean. Usually naked trading is identified with a chart that does not use indicators, it can be said to be trading without using indicators.
If without indicators, how do you analyze price market movements? Although it looks like it is difficult, but in fact, this method has been developed by senior traders who according to him are still effective in analyzing market movements.
Naked trading is a trading method based on technical analysis without requiring any indicators, such as bollinger bands, moving averages, fractals, stochoastic oscillators, RSI, Parabolic sar, Alligator and others. Not intended to contradict traders using the indicator trading strategy, but to share new knowledge for those who have not tried it. Because there is no strategy that is 100% accurate, it will be more convenient to trade with each style, which is certainly more profitable.
It cannot be denied that indicators are widely used by many traders, but it does not mean good because many have used them. Even though the more indicators used in trading look more confusing and price movements are difficult to predict, especially when there are a number of conflicting indicator signals. In a strategy without indicators / naked trading only use plain charts, you can chart charts or candlesticks plus some trendline, Fibonacci, and support resistance tools. We will also study price action, supply and demand areas and chart patterns.
Naked trading is not a new trading strategy, even many traders who are pro-technical analysts prefer to use naked trading instead of using indicators. Because indicators have weaknesses and will not be able to predict all price movements in all market conditions correctly. Usually only at certain times and conditions indicators can be relied upon.
Why is the naked trading strategy worth trying?, There are 2 reasons, namely:
- Some indicators are lagging.
The initial goal we use indicators is to predict the direction of price movements, so that we can make trading positions according to the indicator signal with the aim of the profit. Even though like that, indicators that are often lagging and we use in predicting long-term, certainly will erode the hopes of traders to be able to predict the direction of price movements more precisely and quickly. However there is un-lagging indicator like Harmonic Scanner which helps you to find potential Harmonic pattern easily.
- We will lose if only trading relies on indicators.
If we want to become successful traders, we should stop relying on indicators 100% and we should start learning to be able to read price action and most importantly, trading psychology.
If we have learned how to analyze the direction of price movements in real time trading, then the results are profit-making progress. So we can trade with a combination of indicators and understanding price action, should not depend only on indicators.