No indicators, No volume, No fancy drawings. Only Price, that's enough

EDIT 20-01-17: Since, I’ve received many PMs asking for my trading plan, I’ve written it here: http://forums.babypips.com/free-forex-trading-systems/84330-no-indicators-no-volume-no-fancy-drawings-only-price-thats-enough-4.html#post800962

Hi everyone, scanning through the forum I saw many fancy trading systems who are teaching newcomers to focus on the colored lines of the indicators, some other trading system says you should watch carefully to the tick volume while a candle is developing and… enough.

I trade using price as my only indicator.

How?

A picture is worth a thousand words


Why did price turn? Supply and demand and support and resistance mixed with candlesticks analysis.

Another chart


Price speaks to you, if you listen closely you can profit. If you study hard and apply the hard learned concepts to your trading you can succeed.

If you like this thread please subscribe. It is not a signal service, it is a thread used to share a trading system and to learn together.

In the next days I will post some other examples. Hope you like it.

Subscribe to the thread!

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If you want to scalp you can

Just sell from an aggregation area to another. Range trading at its best!



Price is the only thing that matters. Indicators can only show what previously happened, price tells what is happening now.

I don’t put any faith in off-chart indicators either, but please say why you bought and sold where you did in the examples given.

Hi tommor,

it’s pretty simple. Whenever there is balance in the market, buyers and sellers are putting in the same amount of orders. Still, bulls or bears are trying to win the battle.
So price will probably break above or below the accumulation and when it breaks it does it in a strong manner.

See the chart below.


Can you see the pattern here? Price go up with a strong candle, orders accumulate forming a rectangle, price shoots back to the base.


Can you see this? See how price create this aggregate on the right? How price fell after that?
That’s what I mainly trade, the target for the trade is the next cluster below!

R:R Risk reward is usually 1:3

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Well, it all looks a bit - discretionary - to me.

In example 1 you bought after a congestion zone in a downtrend. In example 2 you shorted after a higher high in an uptrend. In 3 you sold after an exceptionally string bullish candle. In 4 you bought after congestion in an uptrend and 5 shows a down-leg after congestion in a downtrend.

So, why buy and not short, and why short and not buy?

My trading style IS DISCRETIONARY.

You cannot trade the market using a fixed approach. Do you know about model deterioration?

If you are using a mechanical trading system with no flexibility, your strategy will perform worse over time (3-6 months).
If you adjust your strategy to the market phase and condition you can maintain or increase your winning percentage.

Well said bro. Wishing you well with this thread.

By definition price action trading is exactly that, discretionary and subjective. No two PA traders see or trade the same way. Indeed, one might go long and one might go short looking at the same chart. And there would be no reason why either shouldn’t profit.

EURUSD

Can you see where EURUSD is going?

Look the the 4H supply being spiked. It means that sell orders have been taken out and price is probably free to move above the level.

Chart Image

EURUSD bias is bullish!


Thank you very much, I really appreciate that :slight_smile:

I’m shorting NZDUSD, here’s why:


Cheers for this. It seems a conclusion that you are making the system work, rather than the system works for you, or for me and everyone else who tried it, and that’s fine - profit justifies everything. The aim of the game is to make profit not beautifully crafted but useless strategies.

But whilst taking that you trade on a discretionary basis, surely you apply some objective rules as to why you would buy here in an uptrend and sell there in an uptrend?

On top of which, why would a mechanical system’s performance ever deteriorate? (I have heard this before but seen no real supporting evidence)

A mechanical system is built specifically to take advantage of a market imbalance. A market imbalance manifests itself during a specific market phase.
If the market phase ends, your mechanical system needs to be modified accordingly.

That’s why most forex robots are useless after 3 or 6 months!

Here’s the above scalp. NZDUSD.

I scalped only 20 pips then I closed the trades because price action was getting sloppy.

I’m waiting for the DXY to reach this supply level.
Price action is moving slowly and is making one triangle after another.


So we have:

  • price slowing
  • price approaching a supply zone which has not been tested yet.

Let’s see what happens!

Usually, when looking at EURUSD, i pair the DXY. If I want to open a trade on either of two instruments, I first watch if they are correlated in their movements which is usually the case.

This acts as a “confirmation” that if the correlation is strong i can trade both of the instrument and double my profit!

Chart correlation

Exactly! You can use indicators just to confirm your thought and the trend of the market. Many times you can also use them for recognizing the best buy or sell signal.

When you understand how the market moves, you don’t need indicators to signal a buy or a sell.

You need your eyes, your brain and, yes, your fingers. :slight_smile:

I mean this:


Just using price as your indicator, placing a tight stop loss, executing the trade.

Repeat.