Okay last week he left off looking at the following chart:
Now, are you seeing what I’m seeing? Look at the price action of GBP/JPY (days are based on GMT +5). Notice how price action only violates only one side of the previous day’s range? So if I were to straddle trade based on the previous day’s price action, I can set pending orders above and below yesterday’s high and low, and be fairly confident that that I can grab fair amount pips. In the example above, we have +400 pips for Monday, +400 pips for Tuesday, no trade on Wednesday, +300 pips Thursday, and no trade on Friday. This is a good application for the current version of the Sominex EA, which I use to take this trade. Not too shabby and no indicators needed. You’ll notice that I left some moving average indicators on this chart; I do like to have them there as a reference (on the chart above we have a 13, 20, and a 200 MA). The arrows are the “Follow the Trend” indicator which just points to the 13 and 20 moving average cross. By the way, I trade this chart all the time as the price action tends to complement the use of the Sominex EA.
I suppose my main complaint I have with most fancy indicators is that they tend to feed my delusions of seeing things in charts which just aren’t there, in much the same way that people will see animals or boats or faces in the clouds on a given day. I can’t speak for others, but I surely don’t want to see things that aren’t in the charts before placing a trade. Objectivity is very, very important when forecasting Forex price movement. Learning how to forecast price action without indicators is a crucial huge step down the path to becoming a seasoned trader. Krystal has recently released and excellent series of “Pure Price Action” lessons on the Slick Trade website. If you’ve not seen them yet, you need to stop reading this article and go watch the videos. You won’t regret it.
Speaking of regrets, if you’ve been thinking about Sapphire membership in Slick Trade and haven’t gotten around to it yet, you may regret not having done it sooner. Access to expert advisors (like the Foltron and my favorite, the Sominex), educational materials and more are waiting for you – so what are you waiting for?
That’s all for this week, take care and, as always, thanks for reading!
Miss last week’s Pipsqueaks Article? CLICK HERE to access!