I've been trading fx for over a year now and feel that I have reached a point where my trading is becomming consistantly profitable. The one thing that I noticed that has made the biggest difference in my trading is the lack of indicatiors I now use. When I first started I was obsessed with finding the perfect EA or the best combination of indicators ( which usually overwhelmed my charts ). I slowly started to peel away the indicators and focus on price action and support/resistance. Had I followed this strategy from the beginning I would have saved myself about 9 months of frustration. I was just curious if anyone else has had a similar experience and if you would reccommend just focusing on price action. I'm not knocking EA's or indicators but I think they take you're attention away from price action, which ultimatly plays a more important role.
- #2
- May 24, 2007 6:30pm May 24, 2007 6:30pm
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
... I was just curious if anyone else has had a similar experience and if you would reccommend just focusing on price action. I'm not knocking EA's or indicators but I think they take you're attention away from price action, which ultimatly plays a more important role.
I think now might be a good time to remind the Members that Price Action is not curtailed to what transpired over the last 5 Minutes.
Reading Price Action may{often does} require zooming out to the extent of the data you can load.
Waiver: I am not a member of Any PF and do not know if the above complies or contradicts.
can i trade my system without indicators? absolutely
i have a whole thread in the trading systems section about my modified version of a big system(trend continuation and reversals) and ive traded it long enough to not have to use indicators and trade it profitably
why do i use indicators? theyr fun to look at and sometimes theres things like hidden divergence that u cant see just by looking at price and u would require a sort of indicator and in my opinion, reverse or hidden divergence is a very strong trend continuation pattern and just by learning it by itself over a long period of time can make someone profitable.
so u can have success just with price action or without indicators but in my opinion, indicators werent made for no reason and they serve some purpose in trading and afterall everyone is different so some people might have success one way and others in a different way
i have a whole thread in the trading systems section about my modified version of a big system(trend continuation and reversals) and ive traded it long enough to not have to use indicators and trade it profitably
why do i use indicators? theyr fun to look at and sometimes theres things like hidden divergence that u cant see just by looking at price and u would require a sort of indicator and in my opinion, reverse or hidden divergence is a very strong trend continuation pattern and just by learning it by itself over a long period of time can make someone profitable.
so u can have success just with price action or without indicators but in my opinion, indicators werent made for no reason and they serve some purpose in trading and afterall everyone is different so some people might have success one way and others in a different way
The reason as of why I believe every novice trader begins with indicators rather than price action reading is because indicator-based systems/signals are usually easier to follow. Price action reading implies a lot of personal discretion by the trader and it's open to different interpretations, and that scares the new trader.
But it's the only way go. No-one is going to get rich by buying a RSI-crossover above 30. Trading is not that simple.
Totaly agree
Bruno
No Brain, no Gain.
