Strategies For Trading Without Indicators-JB88

Strategies For Trading Without Indicators

Trading without indicators, or sometimes called Naked Trading, is a forex trading technique based on observation of price movements, without applying any technical indicators above the chart. What's in it? How do you trade without indicators like this? Check out the full discussion by the Binary Option Strategy here.

Trading Excellence without Indicators
If traders are likened to junkie makeup, then the indicator is a make up tool that traders always want to try every time they find new tools. Just trying or choosing which one can be used to optimize the trading system is good. As long as there are not too many indicators stacked in one chart.

The more indicators used by traders does not mean the profit will grow. Instead, it is like a woman with a make-up menor, of course it will be unsightly in the end, even if it is just enough, it can be more charming. Likewise, the use of sufficient indicators can help traders reach the target, but if the chart is filled with indicators that are no longer unsightly, then the trader will no longer be able to get an accurate picture of market conditions.

Bullish or bearish markets, basically the decisive ones are not indicators, but prices. Similarly, whether a trader will profit or loss also depends on the price. By stripping the indicator from the chart, the trader can focus on the price movement itself. Indeed, not all traders can do it, but not a few traders are able to trade without indicators.

How to trade without indicators
1. Identify the Swing High / Swing Low

Swing is reversal points above the chart which usually consists of High and Low levels that appear around Support and Resistance. Swing identification can be continued by labeling each swing with four categories:

  • Higher Low (HL)
  • Higher High (HH)
  • Lower High (LH)
  • Lower Low (LL)

2. Define Current Market Conditions

This identification will help you define market conditions. In general, there are three types of market conditions:

Uptrend / Bullish: a series of HH and HL.
Downtrend / Bearish: a series of LL and LH.
Ranging / Sideways / Consolidation: there is no specific swing sequence, and patterns usually form such as Wedges, Triangle, Head and Shoulders, and so on.
To define this market condition, you don't need an indicator at all. Just follow the general rule: Trending markets are markets that form Higher High and Higher Low circuits, or markets that form the Lower Low and Lower High series. If HL, HH, LH, and LL cannot be easily determined, it means that the market conditions are ranging or choppy.

3. Decide To Trade Or Not

After being able to read the market conditions above the chart, you will certainly be able to decide whether to trade or not. In this case, if the market is trending bullish, it can be relatively easy to decide later to buy. Or if the market is bearish, clearly it can be determined in the direction of potential sell.

However, when the conditions are sideways, choppy, or flat because of waiting for an important News release, it will be difficult to determine the entry or exit exit, so you may choose not to trade. Although, there are several alternative trading when the consolidation market can be taken if you still want to trade.

4. Wait for the Trading Signal to Appear

The final step is to wait until a trading signal that can be executed appears. In the way of trading without indicators, the signal is often a candle formation that indicates a reversal or a breakout.

One of the most popular types of candlestick signals for price action analysis and trading such indicators is using a pin bar. In addition, there are also Shooting Star, Bullish Hammer, and Tweezer Top and Bottom, and others.

Next, to determine the Exit point, you can customize it yourself, either with the Equal Waves principle, based on the Risk / Reward ratio, or other alternatives without applying the indicator above the chart.

5. Arrange a Trading Plan without Indicators

Write the trading steps without this indicator, following patterns that you understand as trading signals, on a paper or checklist. Make sure you obey all that and are not easily seduced by a momentary inspiration that is not clearly basic.

6. Keep the Head Cool

For users how to trade without indicators, psychological control presents its own challenges, because it will be very easy to "impose" our illusions about price movements, even though on the original chart there is nothing. Therefore, you must be really cool in making trading decisions and not trying to invent trading signals.

There are many opportunities for profit in the forex market, but those opportunities are not always present every day. Also there are times when you should avoid the market. These things are just a few of the various realities and dynamics that all traders need to face, regardless of trading techniques.