Could this be for real? Is this possible with the manner in which price fluctuates randomly? How can I predict price movements without the use of indicators? Isn’t this gambling? These were numerous questions that stumbled through my mind when I started thinking of trading the markets with just naked charts. And yes I mean it, naked charts!
To trade financial markets with naked charts is a sign of evolution in a trader’s trading career. Most traders still don’t believe this is achievable as we were all trained with the use of one indicator or the other to predict the next action of price. However, i want to tell you that only 5% of trader’s trade using this methodology and that is why we only have a few successful traders in the world.
I have heard about few traders who have multiple winning streaks in a row when trading the markets using this method but I believed this was just a fallacy until I figured out this is 100% possible. I personally am a living witness to this fact after applying this methodology. Right now I am in my 10th consecutive winning streak, never have I witnessed such before in trading.
Trading naked charts is one of the simplest methods of trading financial markets; which involve the combination of Demand/Supply zones or Resistance/Support and Price Action patterns. The Logic behind this system is to look for price action patterns in this zones, areas or levels. I believe the 1st thing every trader should master in the art of trading is detecting supply/demand zones and not the use of indicators. This will enable traders speculate the markets easily and enhance profitable trading.
The four most used price action pattern that I personally use is the engulf pattern, pin bar, hammer and sign of weakness bullish or bearish candle stick. Once all this elements are combined and implemented, I guarantee you will be amazed with your trading results. You see indicators are generally lagging, they follow the price. Everything in trading always reflects in the price, so I think it’s high time we start paying attention to price itself.
When I see some traders charts jam-packed with so many indicators, trend lines and other technical tools, I wonder how they speculate the markets when price itself is not even visible. Yet with all these designs and colorful charts, most of these traders can’t boast of 20% ROI monthly. I think and believe keeping it stupidly simple is the easiest way to rip profits from the market. Most traders believe trading profitably must be a complicated process but I am telling you this notion is wrong.
I am not prohibiting the use of indicators, i am only saying selecting 1 or 2 indicators is reasonable enough. Too much of information can cause analysis paralysis in trading. In conclusion, trading using naked charts is highly lucrative and rewarding if one masters the art. Do not forget keep it stupidly simple and apply sound money management. These are the secret keys to successful FOREX trading!