Before You Give Up
What if I told you that there was a system where you could be trading without indicators?
While traditional forex traders have been trading with the help of indicators for years, those who are interested in alternative trading techniques are looking for a new way to trade the market.
While there are many indicators out there that are designed to improve the performance of the trader, not all of them are created equal.
In this post, we’ll share our experience and knowledge on a new method for alternative trading that is designed to be simple and effective.
What is trading without indicators?
Trading without indicators is a way of trading currencies without using any technical indicators. Instead, it relies solely on the price movement of the currency pair.
Trading without indicators has been around for a long time.
However, it is currently undervalued by the mainstream market because most people associate trading with indicators.
While trading with indicators is great, there are some things to keep in mind before you go ahead and jump into the trading waters.
Before we get into it, let’s first define what are trading indicators.
An indicator is basically a piece of software that helps you make decisions in trading.
It can be used to predict the future movement of a particular asset (for example, the price of Bitcoin).
These indicators are based on a number of different technical indicators, which are also known as “technical analysis.”
The main indicators are:
- Moving averages
- Volume indicators
- Time frame indicators
- Trend indicators
Technical analysis is the study of past price movements and their effect on the price trend.
Most indicators are built using historical data from a certain time period.
When applied to the present time, these indicators help you predict the future movement of a particular asset.
Moving averages are one of the most popular indicators in the market today.
They are used to smooth out the price movement and find trends.
But the key is to remember that technical indicators lag behind price.
Why do people trade without indicators?
The main reason why people choose to trade without indicators is that they want to trade fast.
With indicators, the process can take a few hours to set up, and it is not always easy to identify the perfect setup.
In addition, indicators can sometimes be a little bit confusing.
In contrast, price action trading is much simpler.
If you know how to trade the market, you can get started in just a few minutes.
With price action trading, you don’t need to set up indicators.
There is no need to use a moving average or trend line.
Price action trading is easy to understand and it’s very fast.
Trading without indicators is much more like swing trading than technical analysis.
It is much faster, and you don’t have to use any indicators.
It’s just a matter of reading the price action and reacting accordingly.
However, there are other reasons why some people choose to use trading systems without indicators.
Some traders prefer to keep a minimalistic approach and just focus on one technique rather than relying on multiple indicators and indicators that have a different setup.
Other traders don’t like to trade based on indicators because they believe that trading without indicators is too risky and unpredictable.
How can I trade without indicators?
Trading without indicators is a technique where you use price action to determine when to enter or exit positions.
There is no need for indicators, such as moving averages or stochastic oscillators.
The price itself is enough to determine the strength of the market and whether or not it is time to buy or sell.
The way you can trade without indicators is by using the following:
- Chart Patterns
- Candlestick Patterns
- Support and Resistance Levels
- Supply and Demand Zones
These are all great starting points for traders to begin with.
But, it’s important to know how to combine these techniques with each other in order to be able to trade in a profitable manner.
Chart patterns are very easy to understand.
The basic principle of chart patterns is that they are the result of a price movement that forms a specific shape.
The most popular chart patterns are:
- Head and shoulders
- Double tops and bottoms
- Triple bottom patterns
They are all great indicators of a trend reversal.
These shapes form at the end of trends normally and can help traders understand if the market is going to reverse or not.
Even if you trade with or without indicators, the chart patterns are still something you should learn about.
Candlestick patterns are also a very important indicator.
The candlestick pattern is the result of the price action of a particular market.
They can be used to understand the current state of the market.
They can be used to determine if the market is trending or not.
The most popular candlestick patterns are:
- Engulfing patterns
- Shooting star
- Hammer patterns
Each one of these patterns can be used as a signal for the beginning of a new trend without the need for a technical indicator.
Candlestick patterns can be used to help you determine the strength of the market.
Support and Resistance Levels
Support and resistance levels are other non-indicator that traders can use to trade.
They are the result of a price action that forms an area that cannot go higher (resistance) or lower (support).
They can be used to determine the strength of the market.
When the market is strong, the price will penetrate these levels easily.
When the market is weak, the price will struggle to go higher or lower than these levels.
Support and resistance levels can also be used to determine when to enter or exit a position.
Supply and Demand Zones
Trading supply and demand zones are another non-indicator way of trading, and to be honest, one of the best ways too.
These zones are pockets of liquidity where the market will react to.
They are easy to uncover, but timing is everything.
Do professional traders use indicators?
Some professional traders do use only indicators to find their trading opportunities.
Whilst some professional traders use only price action.
However, it is important to note that there is no “right” or “wrong” way of trading.
Whatever is working for them, may not work for you.
The one thing that professional traders have in common is that they trust their systems and understand risk management.
Traders who have been around for a while know that indicators are important when it comes to technical analysis.
What are the benefits of trading without indicators?
The benefits of trading without indicators are numerous, but the most important one is that it helps you to understand what is going on in the market by itself.
By trading without indicators, you can get a much better view of the market than with any indicator.
When you trade without indicators, you are trading based on your own analysis vs. the interpretation of what the indicators represent.
It’s also helpful when you are learning how to trade because it teaches you to be more independent and not rely on anything else to tell you what is going on.
You will learn to trust your own judgment about the market and that will help you to become a successful trader.
Trading without indicators can also help you to see things that you may have missed if you were relying on the signals from the indicators.
This can help you to avoid some potentially costly mistakes and make good decisions for your trades.
In short, trading without indicators can be a very beneficial learning tool for anyone who wants to become a better trader.
Conclusion – Should you be trading without indicators?
If you are new to trading, I recommend learning how to trade without indicators.
This will give you the ability to be in control of your emotions and will make your life much easier when you start investing in stocks and commodities.
As you can imagine, when you are trading, your emotions tend to run high.
It is very important that you learn to control them when you start out.
By doing so, you’ll be able to make more money over time.
I’m sure you’ve heard of the saying that “Indicators are your friends”, but in reality, indicators aren’t your friends.
They only show you what’s happening right now and they don’t tell you what to do next.
They can be useful for making a decision and that’s all, but they can’t make up for an awful trading strategy.
You have to put yourself into the position of a trader to understand the benefits of trading without indicators.
So, which part gave you the most value?
Let me know on social media.