Trading without indicators is also known as Trading Naked or trading with only price action. Most professional traders actually trade naked depending on only price action. Technical analysis is the art of predicting the future price action in the short term based on the past price action. What is on the left of the chart is history and what is on the right of the chart is a mystery.
Many pro traders only use price action to solve the mystery that lies ahead on the right of the chart. Most indicators that are used in technical analysis are lagging in nature. Lagging means that the trading signals generated with these indicators will be a little late, price action would have already moved ahead.
So many pro traders simply avoid the indicators in trading and solely depend on using price action in making their trading decisions. For example, some would use candlestick patterns to predict the price action as well as other chart patterns.
There are other traders who are the masters of using fibonacci levels in their trading while there are some traders who solely trade depending on the pivot points. Now, it is always a good idea to confirm a trading signals using a second method before you make a trading decision based on that signal. Here comes the use of indicators. For these fibonacci levels, pivot points and chart patters on their own are not considered to be sufficient.There are a lot of subjective things in trading. If you ask two traders to make a trendline on the same chart, both of them will come up with two different trendlines. Given the same trade setup, two traders will decide to make two different entries into the market. You need to keep these facts in mind. Trading is an art plus a science.
You cannot never be 100% sure in trading. This is why you will keep on hearing over and over again, markets are always unpredictable. So what you need to master is how to read the charts correctly. There are a number of high probability chart patterns that tell about the possible reversal in the market. You should master a few of them and then only trade them.
Apply the K.I.S.S principle in trading. Keep your trading as simple as that. The simplest trading systems have a higher chances of success as compared to complicated systems. Don't waste your money in expensive trading software. Learn to trade naked using only price action and you will succeed!
Mr. Ahmad Hassam has done Masters from Harvard University. Download this Fibonacci Trading FREE eBook by the Elliott Wave International.
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