How To Trade With a Naked Chart

I'm here to discuss with u all how to see chart with no tools or indicator.

I don't use what I call "indicators", at all, but I do draw horizontal lines representing my impression of recent support and resistance, and I wouldn't want to trade without them.

They're "indicative of my perception of recent support and resistance", though, so I suppose some people might call them "indicators"?

I don't know what you mean by "tools", though. Perhaps you'd like to clarify that? The chart itself is a "tool", isn't it? Maybe you're thinking of things like pivot points or Fibonacci levels, when you say "tools", to differentiate those from the things that people are clearly agreed are "indicators" like MACD, RSI and so on? I don't use pivot points or Fibonacci levels, either, myself. I've never seen any non-anecdotal evidence that they're any more reliable or significant than randomly drawn lines. And all the objective, independent studies I've read that have actively looked for any such evidence have failed to find it at all. (Randomly drawn lines can easily be made to look like really reliable tools/indicators, though, so perhaps that's not a great surprise!)

The things I trade (without indicators at all) are reliable bar patterns such as 1-2-3 formations, Ross Hooks, Slaughterbeck entries, "long bomb" entries, and so on.

thank you for your interest to discuss with me about it.

after many years i try to understand how market go. i finally realize that market is not follow us. but u must follow the market.
i try to learn elliot wave, harmonic pattern, boilinger band, moving average, divergent, fractal , support resistance and ect.
but it wont work. lastly, i see what is market doing.

just detect where the market want to u-turn then u follow until the end of it.

Yes - I agree with you.

(I do find levels of support and resistance useful for following the market, though. I do much better without everything else you're saying didn't work for you.)

even i now understand where the market want to go still i use draw a trendline to detect where is exactly and when market is change..
then wait for entry. then entry, and entry, entry again.. till market change again.

Like this....

it look like this..

Unfortunately for you, "naked chart" which is a relative concept doesn't provide much sucess than indicators.

(I'm guessing you intended to say "doesn't provide much more success than indicators"? And replying on that basis ...)

I strongly suspect the evidence is against you, there, actually.

This is one of those "forex issues" on which there are two very distinct consensuses of opinion: one among "aspiring forex traders" and perhaps similarly among "forex traders in general", and a very different, perhaps even an opposite one, among "forex traders who are making a living".

I'm perhaps biased, as perhaps we all are, one way or another, on this subject: I'm one of the people whose forex trading became consistently profitable only after I learned to abandon indicators altogether.

But it seems to me that the key point, in this context, is that almost all the people trading, like myself, from "naked charts" are people who have previously been through less successful phases of trading (typically, I suspect, far less successful phases of trading), and have eventually found sustainable profitability only by understanding price action - which is much more easily done when one dispenses with indicators. That more or less doesn't apply at all, the other way round, for the obvious reason that almost nobody (apart from some institutional, professional, graduate/postgraduate trainees, perhaps - but they don't post here) first learns to trade without indicators, so in reality one doesn't find people who made "an opposite journey".

Just my perspective, on a subject about which - in an online trading forum - there will never be widespread agreement, or even anything approaching it ... but please excuse my mentioning that I think your assertion above is actually a mistaken one, the reality being that "no indicators" tends to perform a lot better than "indicators", partly because it's used by different people whose understandings and experiences are different - and there are reasons for that.

I understand that. Different people see in their use of tools and indicators . For me , what is important in forex trading should be plenty of training and understand the market direction . trade what you see and not what you want .

Before I traded using news. Now I use a different strategy, it focuses on scalping. I don't usually disclose my trading strategies, but for example, I can denote one of them.
First, define the momentum three candles on small time frames. Waiting for correction and enter into market after the close of fourth candle. Provided that candle 4 corrected by not less than 38.2% of the momentum.

This is so sad that to a regular trader the only thing that stays is "to follow the market".
But there are great traders, who actually moves the market!
They are heavy in money matter, but, I guess, they also have been starting some day from a little.
So, potentially, everyone can in some future not just follow the market, but move it!

(Just little motivational post. Hard day today )

If you want to trade naked chart, its better to trade chart patterns on a higher time frame (4hr, Daily). Noise is reduced on these time frames and the signal is clearer

i trade naked chart without any indicator trade on small time frame
thanks

I used to trade like that with Martingale, a little bit of success but the big loose wipe me out. There is no way you can trade without indicator!

I find the exact opposite.

As so many others (including all the people who taught me, and the people who wrote the forex-trading textbooks I found so valuable and helpful) found, it was only when I (eventually) learned to abandon indicators and develop an understanding of pure price action that my trading became steadily and consistently profitable and I was able to make a reliable living from it.

Indicators are derived from previous prices and for me they don't have enough predictive value to be helpful at all. It was only really when I started understanding the reasons for that, that my "real trading education" began.



That's true, but ...

(i) That isn't because you're trading from naked charts: it's equally true of indicator trading. It's about the signal-to-noise ratio, not about what patterns you're interpreting from the chart;

(ii) The fact that slower timeframes give more reliable signals doesn't, in itself, necessarily make them more profitable: it can work out more profitable, overall, to have a much greater availability of slightly less reliable signals - the assessment of this is just one of the countless statistical/probabilistic issues that traders have to learn to master, to ply our trade successfully. It's twice as well paid to make an average of ten pips eight times per day than it is to make an average of twenty pips twice a day.

Plenty of people do exactly that quite well, including me btw. Which indicator are you talking about anyway? There are a few hundred or a few thousand of them, I stopped counting. I'm not saying they're useless but the majority of people on forums like this have no idea how these indicators are working yet they're betting money on them

I only need a big (wide to be precise) screen, I don't even draw lines on my chart - they just distract me.

I don't use indicators at all, so no idea what ironman1 is talking about. PA is king. Xela raises some really good points.

Anyway there are many different ways to be successful trading depending on your own psychology, some prefer the faster charts on lower timeframes, others the higher timeframes and still others make good systems traders, each to his own. The acid test for profitability in most cases is far less about the method or system or indicator and mostly about money and risk management.

Anything that indicates what the next course of action is, is an indicator. Moving averages, manually drawn trend lines, price action, price, candle sticks, news, volume, fundamentals, history, statistics, they are all indicators and they all lag. At the very lowest level, there is no separation between methods of trading, you either open a position because you saw something or you close a position because you saw something.

fullfilled and unfullied expectations trigers orderflow , the end result of the transactions taking place within the orderflow is price action..


basically ....

PriceAction =
The Result in Price Change after Trades/Transactions(orderflow) are executed

price action is a snapshot , put a lil context into it , a well thought out and testet trading plan and you got yourself a good starting point to turn into a profitable trader

indicators are just a derivative of said .. PA / Transactions..