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by: JimBuhs
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Word Count: 429

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.

For example, an MACD indicator may be nice to look at, but can anybody who uses it actually say with great certainty that they have stronger intellectual grasp of the market.

I imagine many people know the rules of how to trade the MACD, but how many can actually proclaim they know what it has to the underlying reason for the price movement? No too many.

While using indicators such as these may seem like a great shortcut for learning the forex market, the real truth is you're just using it as a translator of the market. The indicator translates what it sees to you and shows what it sees through different colors and lines. This may seem like a great idea, but it's really not.

There is no need for a translator. You have to fill those shoes. Let's say you were moving to a Spanish speaking country for a year. Wouldn't you take the time to learn Spanish before you got there? (After all, you're spending an entire year there). I'm sure you can find some body who speaks English there, but do you really think you're going to enjoy the local culture if you never bother to learn the language? Of course not, and it's no different in forex. The only difference is that the language that is needed to be learned 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 believe this is possible, just Google Jesse Livermore. He is a famous stock trader from the early 1900s who was able to become rich just by trading the price action on the market floor. If he could trade price action without even using a chart, you have no excuse.

About the Author

Want to know about price action? Then start learning to trade forex without indicators.

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