Don&#x2019;t Fall Into This Trap When Using Your Charts

Now this article is put out there interestingly, very very much. First of don't forget that it is written by a DailyFX guy, which is the same as if it was an FXCM guy. They have interbank information and that way is far easier to talk.
On the other hand, he is talking about how the indicators show only the history of a currency pair's movement, but at the same time fails to mention that a chart without indicators shows the same thing. That you look back a year or ten years on a chart just with candles you see the same thing, the past. I frankly use indicators for trading, and I use them in the matter of making sure they all or at least 90% of them confirm the same signal for a good entry point. Yes I do check the charts for at least a year back. But! - In my oppinion since I don't have plenty of information as those with interbank access the use of indicators is helpful for predicting the future movement of a pair. The other significant rule is to be diligent and have a well round up money management. With those you can't go wrong too often, which is enough to make a decent living or build up a retirement fund for later. Have fun guys and happy Pipin'...

johnel

Mar 21, 2012 1:17am

There was no trading strategy to be infallible.
With or without indicators, choose the strategy that gives you the maximum win percentage. It depends on you, your psychological profile, your experience in trading.
That is the system in which you are more comfortable.
For me comfortable means to have some indicators(not too much

)+trend lines and of course I check on multiple time frames, what treats the dailyfx story.
In fact trading involve science statistics, the results of which should be agreed.

johnel

Mar 21, 2012 2:41am

Quoting johnel

Disliked

no indicators, no nothing, just a bold chart? hard to believe ...maybe this guy is a genius...I'm not, definitely.

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erratum: bold read bald

Mar 21, 2012 6:48am

E/U rejected the resistance last night, bummer for me... at least I did not lose any pips, this is why I prefer short-term or scalping...lol

E/U is flat on the 50 simple MA on the 4h, i'm out of the market awhile...

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Mar 20, 2012 1:51pm

Well since my indicators just got reset and it looked like a possible bearish move coming I will reserve judgement. I especially like divergences when using indicators as they indicate lack of commitment to a particular move.I still like a move to 1.33 especially with this full retrace earlier today and possibly more as the indicators aren't pushing the oversold condition and price bounced off the earlier 38 fib almost exactly. One thing to note is that price hasn't closed above the 4 hour 50 fib yet but has tried unsuccessfully several times. How about you guest? Sorry about the delay. Been under the weather a few days and just getting myself back into shape.

Quoting Guest

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Ok lets talk about possible outcomes: I guess next direction EUR/USD for this week is to test 1.30 level (no indicators used) before going up again to 1.32 vecinity. This is my take, what is yours.

Ignored

Mar 20, 2012 3:11pm

EU is in convergence mode. I would wait for a breakout on the 4h charts before I entered a trade. Natural direction seems to be higher, but some powerful forces are keeping it down (Sith?)

Quoting jaygee

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Well since my indicators just got reset and it looked like a possible bearish move coming I will reserve judgement. I especially like divergences when using indicators as they indicate lack of commitment to a particular move.I still like a move to 1.33 especially with this full retrace earlier today and possibly more as the indicators aren't pushing the oversold condition and price bounced off the earlier 38 fib almost exactly. One thing to note is that price hasn't closed above the 4 hour 50 fib yet but has tried unsuccessfully several times. How...

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ReaM

Mar 20, 2012 3:39am

I started trading without indicators since about september last year. I have absolutely nothing on my chart. Works for me.

johnel

Mar 20, 2012 12:53am

no indicators, no nothing, just a bold chart? hard to believe ...maybe this guy is a genius...I'm not, definitely.

adhie73

Mar 20, 2012 1:14am

absoluty agree with that

teddybearsh

Mar 20, 2012 1:10am

Quoting johnel

Disliked

no indicators, no nothing, just a bold chart? hard to believe ...maybe this guy is a genius...I'm not, definitely.

Ignored

that's how should be to trade..and i'm sure he have become an expert when he trade without indicator

Loadedgun

Mar 20, 2012 2:07am

Its a mind game and everyone processes information differently. But technically you do not want to look at a chart like that - since current price action and history provide very different perspectives - where the intent is to determine a trade. For instance all you need to do to clarify a trend is look at say the RSI line relative to 50. And depending on the time frame decide what that implies for your decision. Of course if you want to check the strength of a trend via the three touch rule - you may want to view such extensive data series as would enable that particular application. One reason why exponential MA's are favored by some is that they are front loaded, and even DeMark stresses front loading in drawing trendlines (right to left). So I do not see the point this guy is making - I use the 5 MA very often because the more recent the data the more reflective it is of current market dynamic/sentiment.

Loadedgun

Mar 20, 2012 6:40am

Frankly every single trader employs one or more technical indicators whether or not it is an explicit or implicit tool - something indicates or informs your entry, exit, etc. The issue here is not whether an indicator is employed or not - but whether recent or dated data provides the better guide to trades. I would say it depends on what you wish to evaluate. Therefore, the writer to my mind misleads in his incompleteness - especially the neophyte trader. Signed the manipulator

Mar 20, 2012 11:33am

What a bunch of nonsense. i have several indicator based trades that very rarely lose. When you find something that works 90% of the time, trade it. It is the scenarios that lead up to and from those setups that matter more than the actual indicator level. Figuring those out has been the key for me. Whatever works for you, use it.

Mar 20, 2012 5:19pm

Sometimes the best trade is no trade at all. I like to trade the reactions to different stimulus. When the buyers(or sellers) run out, it gets a bit obvious and is time to trade. Good trading everyone.

Trader#ABA4

Mar 20, 2012 5:19pm

I also would recommend to pay attention to who or when buying is going on.
Is it a coincidence that in 4H TF
March 16 8:00 am = rally from 1.3070 to 1.3187
March 19 8:00 am = rally from 1.3147 to 1.3246
March 20 8:00 am = rally from 1.3171 to 1.3251

Mar 20, 2012 8:01pm

You noticed that too...lol?

Quoting g_4d69ac1e

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I also would recommend to pay attention to who or when buying is going on.
Is it a coincidence that in 4H TF
March 16 8:00 am = rally from 1.3070 to 1.3187
March 19 8:00 am = rally from 1.3147 to 1.3246
March 20 8:00 am = rally from 1.3171 to 1.3251

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Mar 20, 2012 6:15pm

Excellent analysis! I spend a lot of time studying the x axis. A lot of people are hung up only on the y axis. They seem to be like people that will only long or short. A bit short sighted imo.

Quoting Guest

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I also would recommend to pay attention to who or when buying is going on.
Is it a coincidence that in 4H TF
March 16 8:00 am = rally from 1.3070 to 1.3187
March 19 8:00 am = rally from 1.3147 to 1.3246
March 20 8:00 am = rally from 1.3171 to 1.3251

Ignored

Mar 20, 2012 6:17pm

I would also go along with that if my indicators didn't get reset today on that dip. It really makes me hesitate with a long or short here which brings me back to: Sometimes the best trade is no trade at all

Quoting Guest

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Agree, even though I think we are already into the scenario you describe and the buyers are running out for a while. So I expect wed or thu consolidation breaking down in London session and some rally back in NY session.

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Trader#ABA4

Mar 20, 2012 8:20pm

Might be breakout is not confirmed until beyond 1.3290

Quoting akatom2u

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Might be crossing the threshold of upward breakout about now(1.3265).... if the NY open breaks upwar I sure would like to be in that parade!

Ignored

Mar 20, 2012 8:49pm

I saw that, I figure if the closer threshold is passed with the momentom of the NY open, 1.3290 would be crossed with no problems in the future, barring the interference of the dark forces.

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Trader#ABA4

Mar 20, 2012 9:03pm

Right however I think NY open will see a much lower price after dawn and I am getting asleep.
Will you stay awake all the night long or you dont suffer the North America inconvenient time zone.
Good trading.

Quoting akatom2u

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I saw that, I figure if the closer threshold is passed with the momentom of the NY open, 1.3290 would be crossed with no problems in the future, barring the interference of the dark forces.

Ignored

Mar 20, 2012 9:41pm

I'm currently locked into B/E with 30 pips of profit at 1.3277...I'll have to let this one ride alone, my new job does not allow time to check the market... I'll be up at 4:40am Central though.

Quoting g_e525e3ad

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Right however I think NY open will see a much lower price after dawn and I am getting asleep.
Will you stay awake all the night long or you dont suffer the North America inconvenient time zone.
Good trading.

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Mar 20, 2012 5:27am

It seems his article has nothing to do with using indicators or not, but it seems to say check more than one timeframe. I myself try not to trade against the 4h timeframe.

Mar 20, 2012 8:05pm — Edited

Might be crossing the threshold of upward breakout about now(1.3265).... if the NY open breaks upward I sure would like to be in that parade!

Mar 20, 2012 9:43pm

TP is set for 1.34 btw...you never know what yer gonna get.

jonahky7

Mar 20, 2012 1:51am

when no indicators is used, more likely insider trading, lmao! He doesn't even look at RS lines for goodness sake ROFL. I bow down to you matey

Trader#B150

Mar 20, 2012 2:46am

I agree with this article too. My own trading became sustainable only when I got out of the indicator trap. I still use them to generate trading signals, but without the kind of analysis Krivo explains here, there is little chance of filtering those signals in any meaningful (profitable) way.

Trader#0699

Mar 20, 2012 6:36am

The no indicator, plain chart concept is fascinating to me.

This article inspired me to look for other traders doing the same? I found this video below, I'm sorta new, any of you guys able to tell me how real his stuff is?

http://www.youtube.com/watch?v=NAiVtbj_eIY&context=C4e13abbADvjVQa1PpcFOsJpqwEYEjT4TgYLnoF3uFFlQK7h-iGHA=

Trader#4136

Mar 20, 2012 6:42am

Quoting ReaM

Disliked

I started trading without indicators since about september last year. I have absolutely nothing on my chart. Works for me.

Ignored

I have found that since about Sept 2 or so, all my indicators have turned to dog poop. The market has been moving on news and not much else. Since then I've been learning to trade without indicators. Adapt or perish.

Trader#ABA4

Mar 20, 2012 11:29am

In my understanding the author is not recommending to trade without indicators, for the contrary he mentions further technical analysis are necessary after figuring out the overall situation or the extreme limits between the pair is moving. He is talking about a single point "THE BIG PICTURE IN ANY TIME FRAME" and it seems to me a right point even for fundamentals-only traders. By the way the time back he recommends is around 300-500 bars ( the higher for the smaller TF's) so anyone drawing 200 EMA to analyze charts is complying in some extend with this rule. If a flaw here, I would back Loadedgun comment about incompleteness however the article intent could have been simpler than we expected it to be and I bet not all traders here are looking for flawless articles this is not a contest but kind of traders' social network, so be receptive is a better thing for our community.
In my view another debatable point is whether or not a EMA is better than a SMA none of them can predict future price because they are lag indicators and we all know that price history does not guarantee future prices, trading is all about probabilities and expectancy and specially about finding a system that best works for each particular trader and there is no such thing like a model system suitable for everyone. I have read here from good traders some ideas fitting well to my trading and others not doing the mark just because of me not because they are wrong . I am still wondering why some traders expect a past gap being corrected despite how many weeks or months ago they occurred. I have no knowledge of any study about but it simply does not fit to my market understanding and you ever ever should feel confortable with what you trade and works.

Quoting Loadedgun

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Frankly every single trader employs one or more technical indicators whether or not it is an explicit or implicit tool - something indicates or informs your entry, exit, etc. The issue here is not whether an indicator is employed or not - but whether recent or dated data provides the better guide to trades. I would say it depends on what you wish to evaluate. Therefore, the writer to my mind misleads in his incompleteness - especially the neophyte trader. Signed the manipulator

Ignored

Trader#ABA4

Mar 20, 2012 12:35pm

Ok lets talk about possible outcomes: I guess next direction EUR/USD for this week is to test 1.30 level (no indicators used) before going up again to 1.32 vecinity. This is my take, what is yours.

Quoting jaygee

Disliked

What a bunch of nonsense. i have several indicator based trades that very rarely lose. When you find something that works 90% of the time, trade it. It is the scenarios that lead up to and from those setups that matter more than the actual indicator level. Figuring those out has been the key for me. Whatever works for you, use it.

Ignored

Trader#ABA4

Mar 20, 2012 1:57pm

I agree. It seems some posters are so biased to their own system ( no matter it works or not) that they are getting wrong the author intentions.

Quoting liberty458

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I think he is only talking about the trend, on his first Chart hard to know up/down....but long term chart easy to see trend is up.....but I think first day trading you would know that, so not sure what his point is...

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Quoting akatom2u

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It seems his article has nothing to do with using indicators or not, but it seems to say check more than one timeframe. I myself try not to trade against the 4h timeframe.

Ignored

Trader#ABA4

Mar 20, 2012 4:45pm

Well turning back to indicators I like Elliot ( not to follow blindly) and price action, supply/demand, all spiced with a bit of fundamentals + inspiration (may be common sense). Technically I think we are in a daily Fifth Major Impulse Wave running the end of the first internal wave however bearish momentum is slightly weakening and through March the price action has been confined within a tight range 1.3 - 1.32 most of the time probably because huge supply/demand is placed around these levels and there is no important fundamentals news not priced in yet. So I expect for the downtrend wave to continue to 1.30 barrier and let see what happens later. Even in case we think for the contrary that the 16 jan low is a reverse point and we are already in a brand new uptrend then the retracement from the 24 feb high (1.3485) could not be finished yet because the 61.8 fib is placed around 1.2950
On the other hand I have seen some recent lack of correlation between The Risk-On sentiment and the US good-shape economy meaning EUR/USD buying could face weakness while US economy further recovery. The only strong participant I can see in recent rallies is the FED who is trying a hidden QE3.

Trader#ABA4

Mar 20, 2012 5:56pm

Agree, even though I think we are already into the scenario you describe and the buyers are running out for a while. So I expect wed or thu consolidation breaking down in London session and some rally back in NY session.

Quoting jaygee

Disliked

Sometimes the best trade is no trade at all. I like to trade the reactions to different stimulus. When the buyers(or sellers) run out, it gets a bit obvious and is time to trade. Good trading everyone.

Ignored

Trader#ABA4

Mar 20, 2012 6:28pm