looking for trading system without indicators

I only use price action, and I used to be an institutional sales trader before.

OK so How did you do that?

What does that meen?

He used to sales "trades" to institutions. He got robbed outside of a gas station in Chicago(owned by a hindu guy) trying to sell him a trade(gas stations are institutions isn't?). Now he's posting here at FF.



Please!!!!!

Hello Traders

All I can say is price action trading does work, I have tripled my account in 5 months, Ok my account was not a very large one initially. What I did was fund one of my accounts with a small amount. I did not want to use a demo account because one's psychology is very different when trading with demo cash. I just had to try this price action stuff with real moola.

This little experiment came about after reading a book "Trade like Jesse Livermore". Although the book was not the only answer to my long search for that amazing system, It was the catalyst that brought 5 years of trial and error on every indicator and trading system ever created to an end. Now the only thing I might add to my hourly candlestick charts are trend lines and nothing else.

I have come to realize that indicators lag ALOT but price does not, All I have learnt is to recognise patterns that are shown on the charts that tell you when to get into the market and when to get out, As Jesse Livermore said that price will tell you when to get in and when to get out.

I dont enter into the market every trading day, The trick is to let the market show you in a form of a chart pattern what it could do next, Sometimes your money must be in the market , Sometimes your money must be out of the market and sometimes you must just go fishing. I have had to learn to be very very very patient with this type of method.

Maybe price action trading may not be for you, and I have come to the conclusion that everyone is different, so many traders HAVE made money with indicators, each person is different, Price Action works for me.

All the best in your search

Richrichie

WHAT IS AN INDICATOR?

No, really, that's a serious question, what is an indicator?

I have created a completely free EA that uses the Turtles Price Action (breakouts) as entries. You can find it at: http://www.forexfactory.com/showthread.php?t=143250

I use this EA and I draw lines for my entry points is that an indicator? I wouldn't think so. At least not in the same way that the Ichimoku is an indicator or in the way that people use MACD for entries.

Many people use the ATR indicator, not as an entry point, but more to determine their stops and take-profit levels. Is that an indicator when people just use it for information and not entry?

Bottom line - it's a mistake to say, "absolutely no indicators, just charts" because some indicators will lead you into trades (ie Ichimoku. MACD) but others will only make trading (on a principle like PA) much easier to do and yet others (like ATR) will help you manage a trade, nothing more.

so funny

You've been where I'm going. I'm not sure what you mean with the last few quoted lines. Chart patterns can be traditional, common and not yet defined, locally repeating, temporary, or unseen (ticks, in MT4.) How you mix the two ideas, price action and chart pattern, implies a nontraditional approach to me, which I've seen almost nothing on and am struggling to define.

Just send me your money and I will trade it for you..... there .. now you don't have to use any indicators....

Hi Richrichie,
Would you care to share your technique?

Ha, being a late entrant could help, I suppose,to be able to garner wisdom from the early birds on this market...Well, I am not exactly looking to (day) trade sans any indicators or tools, but presently curtailed with the required (adequate) information and platform set-up to get timely access to relevant news and to get all those sophisticated tools/ aids to enable trade decisions in FX. Hence I wish to pose this : What is the relatively safer FX trading style/ method available for someone with inadequate technical analysis or the usual US/European and/or Asia Pacific macro economic information that is said to apparently move prices on a periodic basis across the different FX [24/5] trading hours/time zones.
*perhaps,I am repeating the same question,well, I am not sure.

The best way is to start your own and unique 1-2-3

Sorry there is no system without an indicator else it wont be a system.
check the definition of an indicator. it is something that shows signals when another activity is triggered.

So what you are asking is; Can i fish without a bait?

well yeah, you can fish without a bait but be ready to stay up all night without catching anything

I think you should re-frame your question to
is there any system out there that doesnt makes use of technical or custom indicators other than price action.

Answer
Sure, there are many. look for redsword11's thread (price is everything)

But i would suggest you at at least one more indicator for confirmation or risk reduction. In fact, trading without something to show you support and resistance is like driving without side and rear mirrors. it is possible but Risky

Actually any system is an indicator. What is meant here I believe is trading just price action. Well, studying this subject will lead you to creating an EA or an indicator to prevent you from non stop staring at your screen.

I understand what Webforex means by 'no indicators', 'purely price action' chart.

Yesterday i just started a new tread in FF based on that.
Its under Trading Systems: My Trading Strategy 1 - Fibo Confluence

Everyone is welcome to explore more. Thanks

I would suggest basic support/resistance as the best place to start. Then you could move into some candlestick patterns and maybe even some Zen trading.

I guess it's possible for a long term trader to watch the news and just call up their broker to make an order.

What kind of news and where to see them? Bloomberg?
If you are familiar with this stuff, please give us some direction.

Hi,
Well I have been trying out many different techniques/systems, all mainly based on indicators. No matter how you see it or cut it, indy's are good to a certain extend, but they are rigid, meaning that systems based on indicators are typically work for some time, but failed when market conditions changed. I am sure many people agree with me that most systems go haywire when market goes sideway. All in all, they lack consistency in the long run. Perhaps that was the reason many traders, like myself too, jump from one system to another. Now, don't get me wrong, I have come across one or two very good systems which are highly dependent on indy's. Those systems respect trend, momentum, etc. I ditch them because they did not quite suit my preference . In fact, when one chooses a system, it all boils down to your personal style and preference. My journey in trading has resulted me in trading completely raw without any indicators, and it is possible to do that. Once you master it, you can read a raw chart like a book. It is like the ability to decode the messages hidden in the price chart. Of course, I am still learning, but my present skill in reading price chart has resulted in consistent generation of profit for the past couple of months.

The good thing about trading raw is that you can tell if the market condition is about to change, or at least if the market condition is right for your to trade -- the probability of being successful in taking a trade in the present market condition. I find it fascinating, especially when the result confirms again and again your reading of the market conditions. It is like putting on a pair of glasses and you begin to see some clear words on the chart. Of course, some areas on the chart are unclear, then stay out as you can't read it clearly.

If you are wondering what my system is, well I can explain briefly here. With all due respect, I do not want to hijack the thread. My technique has 3 components.

the first one is candle stick reading based on Nison's latest course. Currently what you get from the general sources/books on candle sticks are inaccurate until you go through Nison latest course (advanced). Then you will realize a hammer is not a hammer when it occurs at the wrong place. An engulfing is a trap when it occurs at the wrong location, etc. Like what Nison said, candle is a message to inform you what had happened until now, but it does not predict what is going to happen, so you cannot use candle stick alone as the main reason for your entry.

The 2nd one is based on Sam Seiden's supply and demand. He has a series of free video if you search them. However, it can be frustrating when you view these videos as he sometimes contradicts what he says. You got to be viewing them many times to gather the gist from it (I guess because they are free). They charged almost 20K to attend his course. Which I find it over priced. I am able to extract his technique from the videos. The supply/demand concept helps you to locate areas of opportunities where the probability of entry is high. His technique is quite controversial, and it defies all your learning about "trend is your friend", "trade with the trend". etc. You got to be truly open minded about it.

The 3rd one is based on Physics which is my major. All energies are a form of waves. I don't trade Elliott's wave. I have physical waves or I called oscillation. You should be able to identify which waves are continuation, and which waves are turning waves. Just like tsunami, there are big waves, but in between they are smaller waves, etc.

OK, I have attached an example just to illustrate what I mean. Before you jump into any conclusion, I write this post is purely for objective discussion. You may agree or disagree with what I say, but let's keep it in a friendly and objective manner. I am not selling any systems or marketing anything here. If I find that our discussion is heading finger pointing/accusation, etc., I will keep my mouth shut. However, if you have any comments or additional information, we can all learn together. I hope that this is the common goals of many readers here. Cheers ........

FFJason

Can you describe your technique briefly here and show some examples before anyone joins you in the Skype discussion?