If I could compare the concept of learning price action to anything, it
would have to be like learning another language.
It's actually quite similar, if you think about
Think of indicators as like the translator of the market. You could
learn about the market yourself, but many people would prefer the indicators to translate the
market for them.
The indicators interpret the market with their very own proprietary formulas and
spit out what they see in an easy to digest visual.
If the markets are oversold, the stochastics indicator will tell you, if the
market has some kind of price divergence, the MACD will let you know about it. Simple, right?
Maybe, but accurate? That's a different story.
To those that may be new to forex trading basics, and don't understand what I am talking
about, think about if you went to a foreign country that spoke a different language than you
Let's say you were going to France. Wouldn't you brush up on your
French? Some people wouldn't. They would prefer to just wing it. They figure I
could always get a translator or they are sure that they'll find somebody on
the street who speaks English.
Think of what they are missing. Imagine having to walk around all day with
an interpreter behind you. You would feel kind of restricted. Also, how uncomfortable
is it to have to ask everybody you want to talk to "do you speak English?"
Here you are, in this incredible country, and you can't enjoy all the culture it
has to offer because of this language barrier.
It's similar to watching a great foreign film. Sure you can read the
subtitles, but wouldn't you get more out of it, if you actually understood what they were
saying. It would make the film that much better, wouldn't?
It's the same exact concept when it comes to trading. Sure, you could let
indicators tell you what they think of the market. But don't
you think you would be more successful, if you took the time to learn it
It all starts with price action. It's the idea of
seeing the market in its purest form, where there are no translators. Its just you and a
simple bar chart, and you have to understand what its trying to tell