Everywhere you turn, it's hard not to notice that forex trading without price action has become a lost art form. After all, it seems everywhere you look, all these trading systems that are being sold today use a ton of indicators. It's too bad, because if you checked your history of trading, you'll notice that most of the famous traders solely relied on price action to make their trading decision. They were able to trade without using any indicators whatsoever.



Trading without indicators is not as hard as you might imagine. Believe it or not it's a lot easer than the trading off of these indicator driven systems.

It doesn't which indicator you are talking about, there biggest problem is that they are lagging.

For example, lets discuss, arguably the most popular indicator, stochastics.

With stochastics, all the experts will telly you that you should trade them when their two lines cross each other.

Back testing this strategy looks amazing. Pull up your chart and see for yourself. It better look amazing because all its doing is following the price of the respective currency. Doesn't it look like you could be a millionaire just trading stochastics crosses.

This is how they reel in every newbie trader. The problem is no one thinks to themselves, if this is so simple than how come so many people are failing to make money on forex? After all the only thing you have to pay attention to is two lines crossing. How hard can that be?

The problem is what you see in the back testing is not what you're going to see in real time. In back testing, you might see the stochastics cross once and it triggered the buy and sell order. When you look at it in real time, the stochastics might have crossed and uncrossed three or four times before the price finally moved. If you traded every single cross you would have ended up with a lot of losses.

If you are new to trading and want to have a firm grasp of the forex market, then I strongly recommend you clean out your charts. Look at them with no indicators. The day you are able understand price action, is the day you can yourself a forex trader.