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Learning to Trade Forex Using Price Action

Jul 30, 2008
If you are really interested in learning about how to trade the forex markets, you're going to have a hard time doing so, by using all of those forex lagging indicators.

If anybody uses an MACD indicator on their chart, can they really claim to have a stronger understanding of the markets, by doing so?

I?m sure many of us understand the rules on how to trade the MACD, but does anybody know what the indicator means to the overall scheme of the markets? Probably not.

While these kind of indicators may seem like a fast way to learn the markets, the truth is you're not really learning anything about the market. You're just using an indicator as a translator. The translator is the indicator interpreting the market and reading it back to you. This may seem like a great thing, but it is doing you a great disservice.

YOU should be the translator. The market shouldn't have to be translated for you. It's like going to live in a foreign country for a year. You could probably always find somebody who spoke English, but to really be able to live and enjoy the culture, you are going to have to learn to speak the language. It's the same case with trading forex. Except the language you have to learn is price action.

If you want to learn the language, then get rid of all of your indicators that you're currently using or thinking of using. Just wipe the charts clean of all that nonsense. Then, take a look at the EUR/USD for an entire day. Just follow the price movement on a basic bar or candlestick chart.

I know some of you probably think, that doing some like this will not lead to anything great. Well, if you have that attitude, then it probably won't. However, if you have an open mind you'll start to see that price pattern repeat constantly and that can be used to trade the markets.

If you don't really think its possible to do this, then research the name Jesse Livermore. Livermore became rich in the early 20th century by just trading on the market floor. All he used was the price action from the other traders on the floor to base his trading decisions off of.
About the Author
Want to get started finding out about price action? Then start finding out to trade forex without indicators .
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