Trading Forex Using Price Action – Unleash The Power

It seems that most forex traders now are looking for the short cut, instead of using the oldest form of technical analysis: trading just using price action. Most traders though don’t seem to be interested.

You can tell this is true by just going to any forex forum. What do you normally see people talking about? Usually its about some magical system filled with a bunch of indicators or a Forex Expert Advisor that basically uses those same lagging indicators to come up with an automated forex trading system.

Do you see what’s wrong with this picture?

Off the top of their head they should realize that all these indicators like moving averages or stochastics are always lagging. They are great if you want to know what has already happened, but it provides no ability to forecast future prices.

Traders also need to be able to understand that 9 out of every 10 forex traders are losing money as you read this. If this is the case, why use the same exact tools that all the other struggling traders are using?

You also need to think about the fact that most traders on a forum are usually struggling traders. If they weren’t struggling why would they be on a forum to learn about trading. The real successful traders don’t really have the time. They are too busy trading the markets.

What’s bigger than ever now are these forex expert advisors. If you don’t know what a forex expert advisor is, they are basically automated trading robots. Developers are able to program a trading system using lagging indicators so that these robots trade for you while you’re not there.

It’s pretty obvious that this would attract almost every new trader. Who could pass up all that free time that an expert advisor gives you. You can be out the whole day and when you come home the trading robot has made you a millionaire, right? Well, you better thing again.

With Forex Expert Advisors, you’re asking a computer to do something that 95% of forex traders can’t even do. If you know anything about the forex markets, you know that news can really move the markets in a big way. Even more so than any other markets. How is a computer going to account for that.

If you want to truly understand the reason why the market moves the way it does, it’s real simple. Less is more. Watch the EUR/USD for the whole day on a 30 minute chart without any indicators. Just follow the price action. I’ll never steer you wrong. If you focus hard enough, you’ll be able to see patterns that happen every single day. These are patterns that actually forecast the markets.

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