Forex trading without indicators.
It turns out that Forex trading can be done without using technical analysis indicators, which are often disliked by novice traders.
The main reason for this dislike is that most indicators provide their signals with a slight delay, which causes problems when trading on short timeframes.
Furthermore, most scripts require additional configuration and optimization, which is not always feasible for Forex novices. Fortunately, however, there are plenty of options for trading without indicators.
1. Based on candlestick analysis – Japanese candlesticks signal a continuation of a trend or an impending reversal. There are about a hundred candlestick combinations that can be used to determine market sentiment.
The only inconvenience is remembering and detecting these candlestick patterns. To make the trader's job easier, the Japanese candlestick indicator . It doesn't analyze the trend, but only finds candlesticks on the currency pair chart.
2. Using lows and highs - a fairly common technique that uses price lows and highs over a selected time period.
The trading strategy is simple: if the price is near the low and moving up, buy trades are opened, and conversely, if the price is near the high and in a downtrend, sell trades are opened.
3. Price channel - constructed based on two highs and lows, 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 at http://time-forex.com/terminy/price-channel
. 4. Breakout - a continuation of the channel theme, except in this case, trades are opened when one of the channel boundaries is broken.
If the support line is broken, a sell trade is opened; a breakout of the resistance line is a buy signal. The downside is the high number of false breakouts, which can lead to losses. A breakout strategy is described at the link provided.
5. News trading is a strategy built on fundamental analysis of events that influence global economies and exchange rates.
Most novice traders consider news trading one of the simplest strategies, but in practice, this type of trading has many pitfalls. In addition to widening spreads and an increased number of requotes during news releases, there's also a high risk of pullbacks that wipe out stop losses.
Forex trading without indicators, while allowing for a more nuanced understanding of the market, is also much more complex than trading using specialized scripts. It's impossible to say for sure which option is more effective; everything depends on the strategy itself and the trader using it.
