To those who are looking for a currency trading education, here it is. Clean your charts. Get rid of every single last indicator that you use and tell me what you see. If your answer is “nothing”, then I am afraid you are not looking hard enough.
But it’s natural for the first time you see a naked (no indicators) chart that you don’t notice anything. After all, the trading community (especially forex) is indicator crazy. It has been engraved in our psyche that traders have to use indicators.
I was one of the casualties as well. Whatever indicator I could throw up on my chart, I did. It didn’t matter that I didn’t even know what they did. The truth is I didn’t have a clue what any of them did. But it made me feel comfortable knowing that they were on my charts.
It wasn’t until the inevitable happened that I began to lose money, trading. When that happens you tend to reevaluate things, a bit. The day that I stripped of my indicators and decided to look at my charts naked was by far the greatest day of my trading career.
After some time, I noticed the market kept repeating certain behaviors. There were these price action patterns that would constantly be happening in the markets, and they could be used to predict future price movement. This had been staring me right in the face for the longest time, and I never even noticed it until then. It was all due to getting rid of my indicators, and concentrating on what was actually important. Not moving averages, or fibos or stochastic, but the ACTUAL PRICE!