The use of indicators

Beginner Questions
1

I am a newbie in Forex. I have been able to come up with my own strategy, which does not involve using any indicator. It’s completely about analyzing the candlesticks and entering a position based on the analysis I make. I want to ask whether is safe to trade without any indicator

2

It works for others. If you use the search feature here, you’ll find several topics from members who trades without using any indicators. They just use price action analysis.

How is your strategy going? Are you making consistent profit with it?

3

Care to share what you’re looking for? Certain candlestick formations? Certain dojis maybe?

4

I made 30 back tests and had 66% winning rate. For the forward tests, I have only opened 3 positions and they all have been successful

5

@Exzebit

Yes it’s safe to trade without indicators - there are many here who do not use them, myself included.

It is NOT safe though to trade without stops. Use them at all times.

Hope all goes well.

6

when i was newcomer i used BB in my demo account , but when moving in a real account it not worked as like demo , i just shocked about the experience.

7

There are traders who dont rely on indicators. However, if you have found some pattern in the candlesticks which works for you, than probably it is ok to follow your strategy. But, keep on mind to involve some risk management techniques into your strategy

8

Every trader is different so give it a try.

You don’t necessarily need indicators to trade. It’s possible to trade solely on price action.

Ideally, you can create clear rules and use an automated backtesting tool to run both “in sample” and “out of sample” results.

Here are some examples.

Example 1:

  1. Count the number of “up” closes (close minus open greater than 0) over the last “X” bars.
  2. Count the number of “down” closes (close minus open less than 0) over the last “X” bars.
  3. If the number of up closes is greater than the number of down closes, and the current close is less than the close “X” bars ago, then go long at next open. (“X” is simply the number of bars you look back to do the calculation with. It is a variable that you can set it to whatever you like.)
  4. Do the opposite for short trades.

Example 2:

  1. Count the number of higher highs (current high greater than previous high) over the last “X” bars.
  2. Count the number of lower lows (current low less than previous low) over the last “X” bars.
  3. If the number of higher highs is greater than the number of lower lows, and the current close is less than the close “X” bars ago, then go long at the next open.
  4. Do the opposite for short trades.

Example 3:

  1. If Monday was a down day (Monday’s close less than or equal to Monday’s open) then…
  2. Buy Tuesday’s open and…
  3. Sell on Wednesday’s open.
9

Indicators work for many people. But if you have no idea about how they work and how to use them, you better stay away from them.

10

Yes. It depends on how you see or understand the market. If you are able to see where price is going without indicators, then good for you. What works for you is best.