If there has to be a trading method that is talked about the least amount of time in the forex
community, it would have to be price action. It's pretty evident why that would be the
case. After all, price action makes the trader responsible for his trades, not the
When many people start learning about trading, they just
want something that they can follow along with. They love the idea of indicators, because it
100% mechanical. There are no judgement calls to make.
This literally means that it doesn't matter who the trader is. As long as they follow the
mechanical rules of these indicators, they will be successful. You can't help but wonder if
that's the case, then why is it that so many people are losing money trading
One would think, if these indicators are useful and do all the work for you, then why is it that
95% of forex traders are losing money as you read this. It should be simple as long as you
just follow what the indicator is doing, right?
I don't care what indicator you are using. It doesn't have the first clue what is going on in
the market. It's a static formula that some mathematician came up with. Sometimes it works
and sometimes it doesn't. It's completely random. Worst of all, it
doesn't tell you anything about the market.
How could it? Its main goal is to translate the price action of the market into a simple
mechanical system. Instead of you understanding price action, you are letting a formula do it
for you. That's not what trading is about That's not the best forex education you are going to find.
As a matter of fact, I can make a prediction: If you can't explain to somebody the underlying
reason as to why you are taking a particular trade in forex
trading, you WILL lose money in forex. If the only reason you are taking
a trade is because a couple of moving averages crossed each other, your future does
not look good.
Instead of going to the no brainer mechanical system, where you just follow a bunch of lagging
indicators, why not take the time to learn the sweet science of price action. Don't be so
intimidated by it. It won't bite you.
You'll be amazed at what you see. Price action is like seeing the market in its purest raw
form. You'll see where and why a particular currency will just stop dead in its tracks and
completely change trends.
Its all there in black and white.
There is an old saying.
"If you can't see where the marker is head by looking at a simple chart, you shouldn't be