Currency Trading Technique - It's Been Around Forever

 

Did you know that there is a currency trading technique that has been around forever?  Well....ok.....that may be a bit of an overstatement.  But it has certainly been around since the beginning of the stock market.  What's funny, though, is that most people are seemingly unaware of it. I would take a guess and say that about 10-15% of all the currency traders probably use it.

It's a little technique called price action.   

Honestly, I can see why so many people might consider price action a little confusing.

A lot of it has to due to with the fact that it is more subjective than some people are used to.  It's not as mechanical as some traders are comfortable with.

It also has to do with the fact that price action can mean a lot of different things.  It's not a one size fits all kind of trading methodology.

To some, price action could mean trading elliot waves, trading candlestick formations, etc... This is where it's important to learn forex trading the right way.

This may be a big departure for some, as they may be used to only trading when there is 5 or 6 indicators on their charts.  For instance, certain traders are just comfortable trading with stochastics. They'll buy when the indicators show as oversold or sell when the indicators show as overbought.

This may work for a short while, but in the long term, you'll probably see your profits start to dwindle. You are going to have to step out of your comfort zone if you want true success in the currency trading market.

Price action eliminates the need for indicators.  After all, the purpose of indicators aren't to help you trade.  They are there to distract you.

Think of it this way, as a forex trading guide.  Which trader do you think has the highest chance of success?  The trader who has to have MACD, Moving averages, RSI indicators plastered over their chart in order to pull the trigger on a trade, or the trader who can just look at a simple price chart, and know when to buy or sell.  

The answer should be REALLY obvious.

 

 Forex-Trading-Education

 

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