Forex trading without indicators.
It turns out that you can trade Forex without using technical analysis indicators, which novice traders often don’t like.
The main reason for this dislike is that most indicators deliver their signals with some delay, which causes trouble when trading on short time periods.
In addition, most scripts require additional configuration and optimization, which a Forex beginner cannot always cope with.
But, fortunately, there are a lot of options when you can trade without using indicators. 1. Based on candlestick analysis, Japanese candlesticks signal a continuation of the trend or an upcoming reversal. There are about a hundred candlestick combinations that can be used to determine the market mood.
The only inconvenience is remembering and detecting these same candlestick patterns. To make the trader’s work easier, the Japanese candlestick indicator ; it does not analyze the trend, but only finds candlesticks on the chart of the currency pair.
2. Using lows and highs - a fairly common technique in which the lows and highs of prices on a selected time period are used.
The trading strategy is simple - if the price is near the minimum and moves up, buy trades are opened, and vice versa, if the price is near the maximum and there is a downward trend, sell trades are opened.
3. Price channel - is constructed based on two points of maximum and minimum, resulting in two lines between which the price moves. The channel allows you to determine the existing trend and choose the right entry point. This option is described in detail - http://time-forex.com/terminy/price-channel
4. For a breakout - a continuation of the channel theme, so to speak, only in this case, trades are opened when one of the channel boundaries is broken out.
If there is a breakdown of the support line, a sell trade is opened; a breakdown of the resistance line serves as a buy signal. The disadvantage is a large number of false breakouts, which cause losses. The breakout strategy is described at the link provided.
5. Trading on news - a strategy built on the basis of fundamental analysis, events that affect world economies and exchange rates.
Most novice traders consider news trading one of the simplest strategies, but in practice it turns out that this type of trading has a lot of pitfalls.
In addition to the widening of the spread and an increase in the number of requotes during news releases, there is also a high probability of rollbacks of sweeping stop losses. Forex without indicators, on the one hand, allows you to feel the market more subtly, but at the same time it is much more difficult than trading using special scripts. It is impossible to say with certainty which option is more effective; it all depends on the strategy itself and the trader using it.