Currency Trading

There seems to be a new fascination with trading only price (not using any indicators). One of the leading reasons is most likely the fact that traders are starting to realize that there is no such thing as an indicator that leads the price.

Think about it. If there was such an indicator, that would be equivalent to saying that there is a mathematical formula that knows the future. Of course that is ridiculous.

So sense price is the fastest indicator, traders gravitate towards trading off of price alone. But what exactly are you looking for in price?

Just about anything. There are many, many ways to trade off of the chart alone (although it is not my favorite way to do it). The first most important thing to remember is that there are patterns in the price. There are complicated ones and very simple ones.

If you are trying this for the first time, focus on the simple ones. Two of the simplest are the flag and the triangle.

The triangle is just like it sounds. It's where the price continues to contract as time goes on (making the it look like a triangle pointing to the right). You just straddle either side of it with an order waiting for the breakout.

You see, the market moves from more volatility to less. You are catching that cycle when you trade the triangle.

The flag is when the price rests after going hard in one direction. Say the price spurted upwards. Then over the next several bars, it moved slightly down (and the bars are smaller than the original upward bars). You would place an order to buy a little above the "flag", waiting for the continuation.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

Source: www.isnare.com