It seems like the moment a new forex trader starts off his/her trading career, the first thing they do is just blast their charts with every single indicator that their charting platform carries. I know that's what I did when I first started trading. I look back at that now, and wonder how in the world could I even tell what I was looking at? The entire chart was nothing but lines, shapes, colors, graphs, oh my!!
The day that you can trade forex without indicators is the day that you can finally say "I get it now!"
If there is one thing I have learned in my trading career, it's this: The worst thing you can have when trading is too many opinions, and that's exactly what you get when you use indicators.
You've got an MACD saying buy, you've got Stochastics saying sell, you've got moving averages saying buy, and you've got RSI saying sell. How could this not drive you completely nuts??? It's like a severe case of multiple trading disorder. In your ear, these indicators are saying "don't listen to the other one, I know which way the market is headed."
The truth is none of them know where the market is headed. These indicators are both lagging and completely random. All it is, is just a static formula that's being used irregardless of market conditions.
The real truth can be found in price action. There are no formulas involved. It's just a simple case of both seeing and understanding the market. Once you do, you can really see the power of what a simple bar chart can provide.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
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