One thing we can agree in is this does not look like a simple Forex trading strategy and that back testing this mess would be extremely difficult…. Any idea what they are trying to exploit in the market? In truth, it does not matter what you and I think about this jumble of technical indicators. That said, there are so many lines and numbers that have nothing to do with current price which points to that information being useless.
The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective. I would put money on that fact that traders that have charts looking like spaghetti, that blocks the movement of price, are not making money on a consistent basis. There is so much going on with the charts how do you quantify how each trading indicator affects the other to improve the edge? With all that information and the skill at which the technical analysis is applied, it must work very well!
You may have guessed that one reason traders think the Holy Grail exists is because the marketing that is being done…is done very well. Some traders think that there is one trading indicator that will change their trading for the better. Indicators are derivatives of price meaning they NEED price in order to calculate. Even volume needs price.
There is a reason why I love price action and this price action trading course is free for you to learn all about that type of trading.
Simple trading strategies work. Buy and sell signals are not the most important variables for successful trading. I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.
Your setups are not the most important consideration and any one of the free swing trading strategies on this site may be good enough for you. When the human brain has too much to focus on, like the charts above, you can imagine how weary a trader will get.
Therefore, keep keep your Forex trading simple, which means keep your Forex trading charts neat and simple like this:. Simple trading strategies that focus on price action and perhaps an indicator or two will allow you to focus on the more important aspects of trading as mentioned by Tom Basso above.
Swing trading allows you to take advantage of strong swings in the market. They are better traded with the overall trend direction and the potential for large profits is always present. The markets are attracted to these levels because that is where resting orders are. Too many traders have redundant indicators. It is not uncommon to see 2 momentum indicators, 2 trend indicators, as well as calculated levels such as Fibonacci or pivots.
You can have the best trading strategy but if you do not apply proper risk management in trading, you will not survive. For example… you made can draw up a risk management plan that looks like this: The key is to keep your swing trading strategy simple without too many moving parts. Mail will not be published required. Traders who insist they are making money with a swing trading strategy that looks like this: Why do some Forex traders always keep looking for that holy grail Forex trading system?
Why do they always keep looking for the holy grail Forex indicator? So what should you focus on? It breeds frustration and you end up not following the rules of the trading system at all. After a while, you find that you are mentally spent and when you are not making any money at all from using the system, you start to not follow the trading systems rules at all-you start breaking it!
Therefore, keep keep your Forex trading simple, which means keep your Forex trading charts neat and simple like this: Use Simple Trading Strategies Simple trading strategies that focus on price action and perhaps an indicator or two will allow you to focus on the more important aspects of trading as mentioned by Tom Basso above.
Use Swing Trading Strategies Swing trading allows you to take advantage of strong swings in the market. Less Is More Too many traders have redundant indicators. But all these are nothing if you fail one thing…risk management. Even Risk Management Can Be Simple You can have the best trading strategy but if you do not apply proper risk management in trading, you will not survive.
Now, remember this…what we are talking about here is risk per trade. So what does this mean to you? You stop and wait for next week to trade with a fresh mind. Posted in Swing Trading Lessons Tags: Leave a Reply Click here to cancel reply.
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