How to Trade Forex without Indicators

Let’s face it, there’s boat-load of different indicators, trading systems, and trading software floating around the internet that sound really nice but are they really worth using? In this lesson we are going to talk about how to trade Forex WITHOUT indicators, because in my opinion they are largely a waste of time and you do not need them to successfully trade the markets. LET ME TELL YOU WHY:

Why trade with price action?

Perhaps the most important reason to trade with price action trading strategies is because they reflect the raw sentiment of the market in its clearest and thus most practical form. What this essentially means is that by trading off the natural and uninhibited price dynamics of the market you can make the most logical and accurate trading decisions because you are not adding any unnecessary variables to analyze, such as indicators. Trading the market based on indicators is essentially like driving a car at night in the fog compared to trading with price action which is like driving that same car in the middle of a bright sunny day.

Indicators tempt most traders because they claim to make trading easier or provide some magic trade entry trigger that will allow them to fully automate the trading process. Unfortunately, this attempt to turn trading into a black and white or rule-based process is exactly why trading with indicators never works in the long-run. You see, the markets are dynamic and ever-changing, no two-moments are every exactly the same. Therefore, you need to employ a trading strategy that is flexible and that gives you a more of a framework to build off of rather than a rigid and mechanical approach.

How to trade Forex with Price Action

When learning to trade with price action you might feel a little bit lost or overwhelmed by the information you find on the internet. This website as well as other similar sites can do a good job of teaching you the basics. But, if you really want a deep understanding of how to trade with price action strategies it’s a good idea to employ the help of a respected price action trading mentor.

One well-respected price action trading mentor is Nial Fuller. To learn more about his trading strategies check out Nial Fuller’s Price Action Trading Course. This is but one way to learn how to trade with price action, there are other avenues you can take, but it’s highly recommended to learn from someone who is already experienced and successful in the trading strategy you are trying to learn.

Of course, no matter how you learn forex price action, you will need to put in the necessary time and effort to actually master the strategy and become successful at it. You also will need to implement proper money management and learn to only trade valid price action setups and avoid the less than high-quality setups.

Trade Forex Price Action Strategies in Any Market Condition

Trading Forex with price action strategies allows you to navigate and trade the market in virtually any market condition. Whether the market is trending, range-bound, volatile or quiet, knowing how to make sense out of the “raw” price dynamics of the market will give you the power to spot high-probability trade setups. This ability to trade Forex with price action in any market condition is one of the defining characteristics of price action trading and one of its biggest advantages over other trading strategies and systems.

• Why price action trading is the most adaptable trading strategy

Due to the simple fact that price action trading is based directly on the price movement within a market, instead of secondary analysis tools, it is the most adaptable trading strategy. When you trade based off a clean price chart without messy indicators all over it, you get the most accurate view possible of the market, because you have removed all the mud and confusion of indicators and trading software systems.

Indicator and software-based trading systems require that traders enter the market only on specific rules or rigid entry triggers. This approach leaves little room for the element of human discretion, and it is human discretion that allows traders to develop their price chart reading skills, which in turn allows them to trade in any market condition. To put it another way, the market is not a rigid or static entity, rather it is dynamic and constantly changing. So to think you could effectively trade a dynamic and constantly changing entity like the Forex market with a rigid and inflexible trading approach simply does not make logical sense.

What is needed to trade the market effectively are simple price action trading strategies that allow you to read and trade the market no matter what condition it is in. Once you are no longer bound by the inflexible limits of an indicator or software-based trading system, you will begin to see the market from a whole different perspective.

• How to get started trading Forex price action strategies

Now that you know why price action is the most adaptable trading strategy and that you can use it to trade any market condition effectively, you will want to know how to get started trading forex price action.

One of the most effective ways to learn how to trade with price action trading strategies is by learning from targeted and in-depth Forex trading training videos. When you learn from price action videos you will get the most effective education possible because you will be receiving audio and visual information at the same time. Learning in this manner will work to reinforce and ingrain the price action strategies into your head since the human brain remembers things best when they are stored via multiple avenues.

Another excellent way to learn how to trade with price action trading strategies is from a comprehensive Forex price action course. If you find a genuine and effective price action course, it should be all you need to learn how to trade with simple price action trading strategies. Many traders spend thousands of dollars on fancy sounding trading systems and trading seminars, but all you really need is a simple yet effective Forex trading education on price action trading strategies.

Pin Bar Forex Price Action Trading Strategies

• What is a pin bar?

The pin bar is a price action strategy that shows rejection of a price level. A pin bar is a bar with a long upper or lower shadow (tail), and with the open and close near the same level. See this example image:

In the image above we can see an example of a bearish pin bar and a bullish pin bar. A bearish pin bar is a pin bar that shows rejection of higher prices and implies that price may move lower, thus it is “bearish”. A bullish pin bar shows rejection of lower prices and implies that price may move higher, thus it is “bullish”.

• How do I trade pin bars?

A bearish pin bar should ideally be traded in the context of a downtrend. A bearish pin bar in a downtrend shows that higher prices are still being rejected and thus the trend has a high probability of continuing. Typically, the ideal stop loss placement for a bearish pin bar is just above the high of the upper shadow.

A bullish pin bar should ideally be traded in the context of an uptrend. A bullish pin bar in an uptrend shows that lower prices are still being rejected and thus the trend has a high probability of continuing. Typically, the ideal stop loss placement for a bullish pin bar is just below the low of the lower shadow.

Pin bars can also be traded against the trend, but this is a more advanced way to trade them and takes a bit more refined discretionary trading sense. Counter-trend trades are naturally lower-probability than trades with the trend, so you must use extreme caution when trading pin bar price action trading strategies against the trend, or any strategy against the trend for that matter.

• Pin bar strategies in action:

In the daily GBPUSD chart below we can see numerous pin bar strategies that worked out quite nicely. Now, not every pin bar setup is going to work out, just like any other trading strategy or system, pin bars sometimes fail. This is why you must always manage your money properly and not over-trade in the Forex market. All trading systems and strategies have losers, and anyone who tells you otherwise is probably trying to scam you. However, the pin bar is one of the most accurate forex price action strategies you will come across.


• Other pin bar considerations:

While pin bars are indeed a staple price action strategy, you still must learn how and when to trade them, this article gave you a brief introduction to pin bars and a definition of what they look like and what they are. For more information you should consult a ‘price action expert’ by learning to trade price action pin bar strategies from a professional forex price action trading course. There are many nuances to pin bars and all price action strategies that are most effectively and efficiently learned from a pro trader.

The Best Way to Learn Forex Price Action Trading

In past articles we have discussed why trading Forex with price action is one of the best ways you can trade the market. In this article I will give you some helpful tips about how best to go about learning to trade with price action trading strategies.

• Learn Price Action Trading From a Mentor

The best way to learn any new skill or become a professional in any field is to learn from someone more skilled than you. Learning to trade price action from an experienced price action trader is the best way to learn Forex price action trading. You will gain years of insight and knowledge in a much shorter amount of time, along with drastically reducing your learning curve and avoiding many of the common pitfalls that most beginning Forex traders fall prey to.

• Price Action Trading Articles

This website contains many excellent and informative free Forex price action trading articles that you can learn from. Learning price action from free sources is definitely a good way to get your feet wet. However, make sure the website you are learning from contains information from a real trader and that it is actually useful and relevant. The internet is unfortunately full of useless “fluff” and overly-complicated Forex trading systems and “educational” information and products that are simply ploys to take your money.

• Price Action Trading Videos

Another excellent medium for learning how to trade the Forex market with price action is price action trading videos. Click the previous link for some high-quality and very information price action instructional videos. The video format is one of the most effective ways to learn to trade Forex price action since you get an audio and visual demonstration of how to trade with price action. Many people learn a lot better through the combination and cumulative effects of audio and video, rather than just plain text. If you are one of these people than Forex trading videos are for you.

• Price Action Trading Course

A trading course can be a very good way to learn how to trade with Forex price action strategies. Having a comprehensive yet concise price action training resource is one of the most effective ways to learn how to trade since you will have most everything you need all in one convenient package, rather than having to search numerous different resources for the information you are looking for. The key is to make sure you learn from a price action trading course that was created by a pro trader and that it contains a truly effective Forex trading strategy like price action. There are a lot of junk trading courses floating around on the internet written by people who are not actually successful traders themselves. You want to avoid these at all costs; you can usually tell how genuine and experienced a trader selling a course is by whether or not they offer free training material and by the amount and quality of this free material.

How Forex Price Action Strategies Help You Make Money in Forex

Making money in the Forex market is not an easy endeavor to excel at. Therefore, you want to make sure you are using a trading strategy that is truly effective and that won’t hinder your Forex money-making efforts.

Employing the strategy of Forex price action is one of the easiest and most effective things you can do to further your efforts at profiting consistently in the Forex markets. There are many reasons why this is so, but the main reason is that price action trading is a very effective way to trade, and it’s also the most “real” way to trade.

You see, price action makes use of the “core” market data, which is price movement. Other trading strategies and systems make you trade based primarily off of indicators that lag price, or off Forex trading “robots” that are nothing more than a pre-programmed piece of software that is inflexible and rigid, and that will not hold up over-time and through the course of constantly changing market conditions.

Using simple price action trading strategies also has a very positive influence on your trading psychology and your overall trading mindset. This is very important because it is your mindset that truly determines whether or not you make money in the Forex markets. Whereas other trading methods and systems will confuse you and cause you to second guess yourself, using price action to trade the Forex market is a very stress-free and easy-to-understand way of making sense out of the markets and of price movement in general.

Another key feature of Forex price action that will help you make money in the markets is that it gives you the potential to trade solely off the daily charts. This allows you to employ a “set and forget” trading mentality which means you can just check the charts once a day after work or before you leave for work or before you go to bed. You then just analyze the charts for any price action setups, enter the trade parameters if there is something to trade, and walk away if there isn’t. You then can wait 24 hours, come back and check the charts. Trading in this manner often works out a lot better than constantly monitoring your trades which tends to make you react to every little ebb and flow in the market.

Above all else, the biggest thing that using price action strategies does to aid you in making money in the markets is that it gives you a high-probability trading strategy that provides you with a perspective on the markets. This perspective is something that will become clearer to you over-time and practice. Ultimately, what will happen through your mastery of price action analysis is that you will start to develop your own unique way of viewing the markets and making sense of them. This means you will start develop a gut trading instinct that will help you decide which trades are worth taking and which are not.

A Few Price Action Lessons for Traders

The following article will give you some quick pointers about some important topics that you need to understand if you want to become a successful forex price action trader, if you wish to know more about  each topic simply follow the link at the end of the paragraph. Enjoy!

• What are the best currency pairs to trade and when should you trade them?

Traders often get confused about which currency pairs they should trade and which ones they should avoid. While there is technically no right or wrong answer, there are certain advantages to avoiding the exotic pairs and instead sticking to the majors and a few of the crosses. The majors are more liquid, this means you can get in and out easier and at the price you want, it also means the spread between bid and ask price is smaller. The spread is the fee you pay to your broker for making the market for you, it essentially means you are negative on the trade as soon as you enter it, so the bigger the spread the bigger pip amount you have to overcome before you are positive on a trade. If you want to learn more about the best currency pairs to trade click the link.

• Risk / reward in forex trading

Understanding the power of risk / reward scenarios and knowing how to implement them is one of the most important factors in becoming a successful forex price action trader. You need to first calculate the honest and realistic potential risk on any forex trade setup you are considering taking, then you calculate your reward as a multiple of this risk. If you consistently execute your trades with a risk / reward of 1:2 or better, you can lose on over 50% of your trades and still make money. Check out the following link to earn more about the awesome power of risk reward in forex trading.

• The best way to get started with forex price action trading

Chances are you are new to the world of forex currency trading and price action trading, that is probably why you are on this website. One important fact that you need to understand quickly when it comes to forex trading, is that less is usually more. Typically, traders who take fewer positions and hold them for a period of days or weeks, make more money on average than short-term traders or day traders. It is also very important to learn to treat your forex trading like a business and have a forex trading plan. To find out more about getting started with price action trading just follow the link.

• Why you should avoid trading with indicators

Aspiring forex traders very often get caught up on trying to trade with numerous lagging indicators all over their charts. The problem with this is that they do not even know how to analyze the price action below all these mysterious indicators. If you will just learn to trade off forex price action trading strategies before you attempt to learn any other trading strategy or system, you will subsequently realize how silly it is to trade off anything but raw price action. Learn more about why indicators destroy trading success by following the link.

Why Forex Price Action Knowledge is Essential to All Trading Strategies

Understanding how to read a “naked” or indicator-free price chart is essential for unleashing the full potential of any forex trading strategy. Even if you decide not to become a “pure” price action only trader, having a solid foundation in forex price action will positively influence whichever trading strategy you do decide to use.

The reason for this is simple; all forex trading strategies are derived from price movement, therefore, learning to read price action will make all of your interactions with the forex market much more effective than if you didn’t know how to properly interpret price action on a “naked” price chart.

Whether you decide to be a forex trend-trader, breakout-trader, day-trader, swing-trader, or a trader who trades all styles, you are going to be a more accurate and thus more profitable trader if you obtain a solid understanding of forex price action trading.

If you decide you want to use lagging indicators on your charts for some reason, being able to read the price action below the indicators is going to make you a much more effective trader than simply relying solely on the indicators. It is an obvious fact that all indicators are derived from price action, so it just makes logical sense that you understand this price action before or if you decide to go on to use other trading strategies or systems. Even forex trading “robot” systems will be made more accurate with a thorough understanding of price action, because if you spot an obvious forex price action setup it will reinforce your “robot” trading signal or perhaps send you a warning to ignore the robot signal.

Perhaps the best way to learn about forex price action trading and how to read a “naked” price chart, is from an experienced professional price action trader. Nial Fuller has been a successful price action trader for over 6 years now; his abilities to read and accurately interpret an indicator-free price chart have been developed through years of screen time and experience. You can learn to analyze the market with the exact same forex price action setups that he uses by checking out Nial Fuller’s forex trading course.

You will find simple yet effective price action trading strategies taught in his course material and member’s community. These price action strategies can be used to trade the forex market directly or you can combine them with other strategies. However, the simplest, most logical and effective way to trade the forex market is from a stripped down and indicator free price chart; just pure price action trading with no “bells and whistles”. This form of trading has been used for centuries; since the 1700s when Japanese rice traders invented candlestick and price action trading. It has obviously been refined and improved upon over the years, but price action trading is the only trading strategy that has been used successfully for literally hundreds of years. If you do not already possess a working and comprehensive knowledge of price action trading, you need to acquire this knowledge as soon as possible so that you can become a complete trader.

How to Trade Forex with Price Action

Trading the forex market with price action setups sounds like a simple enough endeavor on the surface, but once you really commit to trading with price action you might just be a little surprised to find that there is not a great deal of effective training material on the internet or elsewhere on exactly how to trade forex with price action.

• Obtain a quality forex price action education

The first big piece of the puzzle when learning to trade the forex market with price action is obtaining a quality forex price action education from a trusted and respected source, and also getting a comprehensive answer to the question “what is price action?”. The source that you learn to trade price action from should be an experienced trader as well as a forex trading mentor, they will preferably offer a ton of great free forex price action educational material in addition to any premium services they might offer. Within this free material you should gain a solid understanding of exactly what price action is and how it can be applied to the forex market and made into a complete trading strategy.

Your forex price action education should teach you how to use specific price action trading strategies that have worked for other traders and that are easy to spot on any forex price chart. One professional trader and forex mentor that teaches these type of effective price action trading strategies and has had personal success with them is Nial Fuller. You can obtain a complete and comprehensive forex price action trading education at Nial Fuller’s website; he offers a plethora of free forex price action trading information that can teach you most of the basics of trading with price action, as well as a premium price action course.

• Be realistic

After you find a trusted and reputable source to learn how to trade forex price action from, it is important to maintain realistic expectations about exactly what you can achieve as a forex trader given the amount of money you have to start with. The simple fact of the matter is that unless you over-leverage your trading account you simply are not going to turn a very small sum of money into a very large sum of money in a short period of time. Many beginning traders get caught up in a cycle of boom and bust as they continuously risk too much on their price action trades, this causes them to possibly get lucky and hit a few big winners but they inevitably give all their winnings back and more as they are reinforcing negative trading habits that will always come back to haunt.

• Have patience

Another big factor that contributes to forex price action trading success is having the proper amount of patience. As a general rule, the more patience you have while trading the market the better your results will be. Most beginning traders do not have nearly enough patience because they have an “itch” to trade, they feel like they don’t want to miss any opportunities in the market, and as a result of this they end up over-trading or over-leveraging their accounts, which ultimately causes them to lose money. It is important to learn that the forex market is full of opportunities and it isn’t go anywhere anytime soon; it will be there tomorrow and forever, as long as human civilization exists, so just concentrate on learning an effective method like forex price action trading and managing your risk and emotions effectively, and you will be on the path to trading success.

Make Money with Forex Price Action Strategies

If you really want to have a decent shot at making consistent money in the forex market you are going to need a trading strategy that provides you with high-probability entries, and ones that are not difficult to spot. Using price action trading strategies to trade the forex market will allow you to enter the market on setups that are high-probability and that have been used successfully for hundreds of years.

Trading the market on a stripped-down, or indicator-free price chart, is the most stress-free and logical way to trade. There is no getting confused or frustrated because your charts have so many lagging indicators on them you can’t figure out what to make of them all. Making money in the forex market is more than just a technical exercise; you need to remain calm and relaxed and objective, if you are using trading systems or strategies that confuse you or frustrate you, you are not going to remain calm and collected. Using the technique of forex price action trading, you will have an effective trading strategy that is not complicated, confusing, or difficult to learn.

The ability of price action trading strategies to highlight significant market turning points and trend-resumption levels is ability unparalleled in accuracy and continued effectiveness by any other trading method in existence. This is because forex price action is the clearest representation of the aggregate belief structure of all market participants that you can ever obtain, and it is these beliefs that ultimately move the market, not necessarily the implications of the economic data that cause the beliefs. Many traders do not understand this, or believe it, and so they spend mass amounts of time analyzing and over-analyzing numerous economic reports and technical indicators, in hopes of guessing what the market will do next. Forex price action traders know they can’t out-guess the market, so they let the price action unfold and show them the path to profit.

Traders who employ the method of price action can develop their own unique market perspective because they understand how to analyze and trade off of price dynamics. The main point that traders miss who trade off of lagging indicators or other “magic bullet” trading techniques, is that the most accurate predictive tool of future market direction is price itself, not some alternative, albeit colorful, representation of price. The accuracy of forex price action trading entry signals allows savvy traders to enter the market at the time and condition of their choosing, with the best possible entry price. The main thing to keep in mind however that is no trading strategy is 100% accurate, and even though price action trading is arguably the “most” accurate trading strategy, it still requires a large amount of refined discretion on behalf of the trader, so that you don’t enter into low probability trades. The bottom line is that you have to manage your risk effectively on every trade you take because you never know when you will hit a loser or a string of losers, even when using the most accurate of trading strategies.

Why You Should Learn Forex Price Action

Here is a quick bulleted list of some of the main reasons why you should learn to trade with forex price action trading strategies.

• Price action trading is the study and analysis of the movement of price across a period of time on an uninhibited price chart, in other words, price action is the analysis of a price chart without any messy or confusing lagging indicators on it, and as a result it is the “purest” form of financial market analysis you can learn.

• Learning to analyze an uncluttered price chart is an art and a skill that ultimately provides you with a refined sense of how to read the aggregate belief structure that traders leave behind about a particular financial instrument on its price chart.

• Trading with forex price action helps to positively influence your trading psychology because you are not cluttering up your mind with unnecessary technical or fundamental variable;, this creates a more clear thinking and objective trading mindset.

• Using price action trading strategies to navigate the markets gives you a very high probability trend entry method. Trading with the dominant trend on the daily chart is the most lucrative way to trade, and it is imperative that all beginning forex traders learn how to do this successfully before attempting to trade the counter-trend swings that occur in the market.

• Simple price action setups give us a clear view of what the “big boy” traders at banks and other institutions are doing, since these are the real players that move the market it is important to trade with a strategy that gives you “early warning” to what they are doing, forex price action strategies can provide you with this early warning.

• Trading with price action setups allows you to trade whenever you want and for however long you want. Forex price action setups work well on all time frames, but they become more effective as you move up in time frame. This means you can comfortably trade off the daily or 4hr charts just by analyzing the charts for 20 minutes a day or so, or even just a few times a week. There is no need to drastically change your lifestyle or your schedule when trading with forex price action setups.

• Using price action setups to trade the market allows you to focus most of your mental energy on consciously controlling your emotions and maintaining discipline to manage your risk effectively and to not over trade. Price action setups do this by being uncomplicated while effective at the same time, so instead of trying to figure out what 5 different lagging indicators are trying to tell you, you can focus that mental energy on reminding yourself to be patient and objective, because you don’t have to think as hard about your trading strategy when you trade with forex price action.