Yes, my stance is just that indicators are unnecessary; you can just learn to analyze and trade off pure price action strategies. You are right that indicators may react or represent price movement in a different form that may be interpretable to some people...but why waste your time when you can just learn to read price action??? Plus, the more indicators you put on your charts the more confusing they become, and this can make you second guess yourself or become confused. People tend to go over-board with indicators, putting tons of them on their charts and manifesting signals when nothing is really there. That's why I said they are a waste of time. Just keep it simple, that's how I roll...
Myself I did not succeed with using indicators, but know a few people who use them very effectively. Of course not in a dumb way of "buy when yellow line crosses the blue one ). Indicators are used as additional clues for price action based entries and thus there's no lag.
Yea...I just don't see why anyone would use them. Price action is all you need. Trading is a very very easy thing to over-complicate, and indicators are a very east tool for over-complicating the process...
I agree with this. I trade price action too, and it is VERY easy to over-complicate Forex trading, probably too easy..
It depends. Some people perceive price action better with the use of certain filters aka indicators. They simply watch indicators with more focus than the price itself and know their indicators behavior like their own palm. It's funny at times, when I enter the trade based on price action and my buddy trader who is the big fan of stochastic says "ditto" entering it because his pattern on sto shows entry too. And vice versa.
Price action trading is like surfing. You wait for a wave then ride it as far as you can. Momentum and volatility are important. No one knows for sure where the price will go. Set your take profit target and stop loss based on your Risk reward ratio and off ya go. Peaks are where the sellers are Troughs are where the buyers are. Put your yourself on the right side of momentum.
ALL YOU NEED TO KNOW ABOUT TRADING * Price either goes up or down. * No one knows what will happen next. * Keep losses small and let winners run. * POSITION SIZE = RISK / STOP LOSS. * The reason you entered has no bearing on the outcome of your trade. * You can control the size of your loss (skill) but you can't control the size of your win (luck). * You need to know when to pick up your chips and cash them in. Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss) You cannot control the probabilities of wining or losing. You cannot control your average win size. The only part of the equation of the equation that you can control is your average loss size. PRICE ACTION âNow, 2 patterns of market behavior happen on a regular basis: 1) the price breaks to new high's (or low's) 2) the price reverses from new high's (or low's) They happen regardless of time frame (with the obvious limitations explained above) They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.â - H. Rearden 1) Price will either breakout of the high, low or both of the previous bar 2) Price will not breakout of the previous bar. You cannot reduce it any further. Anything else complicates the issue. ENTERING A TRADE You either decide to: 1) Wait and do not enter a trade 2) Trade a breakout 3) Trade a reversal. Those are your ONLY 3 options. That is all you need to know about trading.