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Forex trading without indicators


      There are a lot of different methods to analyse price movements on Forex. The most common is technical analysis based on indicators. However, the main disadvantage of this type of analysis is lagging of indicators relatively to the current price.
      As traders gain experience they start to understand that they should not rely solely on the indicator readings. You can understand market trends by price movements around significant levels, within channels and ranges, by candlestick patterns, and by market volatility.
      There are traders who do not use indicators in trading. Some of them trade on fundamental analysis.
      Varieties of trading without indicators
      There are several ways of Forex trading without indicators. These may be wave analysis, candlestick analysis, use of non-standard Renko or tic-tac-toe charts, analysis of graphical figures and patterns.
      All such strategies have a common name "Price Action", i.e. the action or behaviour of the price.
      Wave analysis is based on the patterns of price movements, which are based on the behaviour of buyers and sellers in the markets. An experienced wave trader determines by the number of waves where to open a position to get to the beginning of the movement.
      Candlestick analysis involves determining the direction, reversal, and continuation of a trend using typical combinations of candlestick patterns. Such strategies are particularly numerous. Often the trading system involves action after the appearance of a certain candle like a Pinbar or Harami.
      Renco charts make it easy to identify trends on different timeframes without the need for indicators. All traders are familiar with the chart patterns head and shoulders, flags, triangles and other combinations. They are quite often repeated and provide an opportunity to open positions at the most profitable levels. For example, once a head and shoulders pattern is formed, the price almost always reverses, while a triangle pattern most often breaks in the direction of the previous movement.
      A large group of forex trading strategies without indicators is based on breaking through channels and ranges. If, for example, in an uptrend channel, the lower boundary is broken through, the price is likely to go down. When the price has been moving in a narrow range for several days, then a big amount of orders is accumulated on its borders, which are triggered by the breakdown, and the price gets a strong impulse.
      This is the principle upon which the most popular trading strategy of opening of the London session works. Usually, before the opening of the London exchange, the price moves in a narrow range. After the opening, there is a flow of orders, which determine the movement in the next few hours.
      The forex news trading strategy is also based on the concept of price behavior. The price charts clearly show how the range narrows before the release of important economic news, and how the sharp movement immediately afterwards occurs. The famous carry trade strategy is based on the difference in different interest rates of central banks of different countries, so no indicators are needed.
      So it is possible to trade at Forex without indicators and there are quite profitable strategies for that. Of course for wave and candlestick analysis you need to gain experience, but breakthrough systems are available for newbies as well.

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