Why Price Action Is So Underused In Trading?
It appears to me that every time a new trader wants to learn about what it takes to trade the forex marker, they will usually spend all their time scouring the internet to and learn about using indicators like stochastics, MACD, moving averages as well as the other common ones.
After they find out about these indicators, they absolutely flood their charts with all these lagging tools. The sad thing is that it never dawns on traders that they should be learning about price action, when it comes to trading the forex market. I believe this has to do with the fact, that many traders think its impossible to tell which direction the market is headed without having to use these generic indicators. They truly dont know which way the market is going.
The thing is when you are trading with indicators, its a lot like trading with other peoples signals. You are only hoping that the information they are giving you is right. The reason for this is because you dont actually understand the REAl reason why you are taking the trades that you are taking. All you hope is that the indicators formula is accurate.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
I think one of the things that many traders have to struggle with is the fact that when you use indicators, sometimes you are left with two separate indicators giving you opposing signals. For instance, one indicator will tell you to buy, while the other one will tell you to short.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
You can understand that this can certainly be an awkward position for a trader. After all, you are sitting there waiting for some random lines to match to take a trade, which you dont really comprehend, what these lines even mean.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23212
After they find out about these indicators, they absolutely flood their charts with all these lagging tools. The sad thing is that it never dawns on traders that they should be learning about price action, when it comes to trading the forex market. I believe this has to do with the fact, that many traders think its impossible to tell which direction the market is headed without having to use these generic indicators. They truly dont know which way the market is going.
The thing is when you are trading with indicators, its a lot like trading with other peoples signals. You are only hoping that the information they are giving you is right. The reason for this is because you dont actually understand the REAl reason why you are taking the trades that you are taking. All you hope is that the indicators formula is accurate.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
I think one of the things that many traders have to struggle with is the fact that when you use indicators, sometimes you are left with two separate indicators giving you opposing signals. For instance, one indicator will tell you to buy, while the other one will tell you to short.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
You can understand that this can certainly be an awkward position for a trader. After all, you are sitting there waiting for some random lines to match to take a trade, which you dont really comprehend, what these lines even mean.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23212
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To learn more about price action trading, make sure to check out forex millionaires.
posted by X - Men @ 4:22 AM
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