Hi, Ive heard a lot of talk on this forum about PRICE ACTION and how important it is to know and that it is more important than any indicator. Yet this forum is full of indicators and EA's and there are another million ways of using them. So my question is this, what is price action (if it can be explained)and should those who do not know what 'price action' is strip down all the indicators from their charts and study NAKED PRICE Charts for a while??
Hi Kirsty, Have you tried the james16group over at forexfactory? They teach how to trade price action. Also there are a few free threads over there where traders are trading naked/price action.
From my experience price action is best learnt vis a vis lots and lots of screen time. In other words put on your favorite time frame and study what price does when "a" happens and what happens when "b" happens. As you study price itself without indicators your brain starts to recognize patterns. Patterns are also recognized using your favorite indicator(s) especially if you stick with one or two and use them for months or years at a time you simply get very good at using them. The same thing happens when trading naked, you get very good at using Price as your indicator. In my opinion the best way to learn is thru teaching yourself and keeping a journal and making explicit notes of what you are observing. Personally I would suggest using 4 hour or above. The james16group might be the way to go if you don't want to initially teach yourself, that would be a personal preference only you could answer. I find that teaching yourself is much more gratifying.
The James16 guys use plenty of indicators too- sad to say.