Following the Price Action in Forex Trading

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Forex forums prove that most Forex traders now are looking for the short cut- they are not interested in trading just using price action, the oldest form of technical analysis. In these forums, traders always talk about some incredible system covered with indicators or maybe a magical forex expert advisor that’s basically automating the process for them. Indeed most Forex traders want to the trading done for them.

These traders need to know that all these indicators, like RSI or stochastics, are only good for letting you know what has already occurred. If you’re looking for the ability to forecast future movements in prices, then you’re certainly looking at the wrong thing with these indicators. Another thing is that 95% of the world are using the exact same method of using indicators. And about 95% of all trades end up losing money. Why want to be a part of this percentage? Finally, most traders on a forum are usually struggling traders. If they weren’t, they wouldn’t be on a forum to learn about trading in the first place because the real successful traders don’t have the time-they are too busy trading the markets.

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This thing about “Forex Expert Advisors” have increased in popularity. These are basically automated trading machines or robots. They are programmed by developers using lagging indicators so the market trades automatically while you’re away. If you are a newbie in trading, it’s very attractive. With all that free time an expert advisor can give you, who wouldn’t want one? You can be out the entire day and when you return home, the trading robot has made you a millionaire.

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Think again. With Forex Expert Advisors, you’re actually asking a computer or a piece of metal to do something that even 95% of forex traders can’t even do. A computer cannot account for the fact that news can really move the markets in a big way.

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If you want to understand why the market moves the way it does, just remember: less is more. Watch the EUR/USD for the whole day on a 30 minute chart without any indicator. If you focus hard enough, you’ll be able to see patterns that happen every single day. These patterns can actually forecast the markets.

So away with those indicators or those pieces of metals called Forex Expert Advisors. Just follow the price action. It will never steer you wrong.

Source https://ezinearticles.com/?Following-the-Price-Action-in-Forex-Trading&id=1998747

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