If you are struggling to find a trading strategy that seems like it is more than just a pre-packaged set of trading rules or a piece of software that teaches you nothing about the market, than what you are about to read in this article will help you get on the right path. The tendency for new and struggling traders to believe that they need a fancy piece of trading software or a complicated indicator based trading system to successfully trade the market is a very common belief but a huge misconception. There are various reasons why lagging indicator based systems and forex trading "robots" never work in the long run, it is important to understand these reasons so that you gain a deeper understanding of why a simple forex trading method can be used to profitably trade the market with.
Most traders who make most of their trading decisions off of technical market movements understand that the price chart is the main source of information for what causes them to decide to enter or exit a trade. Where many traders go wrong is in believing that through attempting to analyze and interpret secondary indicators to price movement, like lagging indicators, they will somehow gain an advantage that is not otherwise available to them on a naked price chart.
This belief typically arises from reading a website that claims if you learn their "special" combination of indicators you will easily profit in the markets, or from a well-marketed forex trading program that shows insanely good results which many beginners do not know are nothing more than back testing the program over the perfect period of time that fit the indicator to a T. The issue here is that no two moments in the market are ever exactly the same; therefore, back-testing is essentially pointless. The other issue is that people tend to have an ego-driven fixation on making forex trading more complicated than it needs to be so that they can brag to their friends or family about how they are using all these different fancy sounding indicators to trade with.
The fact of the matter is that price action is the best indicator you could ever ask for. Learning a simple forex trading strategy like price action analysis will allow you to unlock the potential of the market. You will not be learning a set of rigid rules that only work under certain market conditions, nor will you be watching your trading software with no personal involvement as you wait for it to generate a signal. When you learn to trade forex with price action you are learning an art and a skill that will carry over to every financial market you wish to trade and will ALWAYS be relevant in EVERY market condition and time frame. This is because price movement generates its own signals about possible impending market direction that once you learn to analyze will allow you to time your entries and exits with as much accuracy as possible. Essentially what is happening when you trade off the raw candlesticks or price bars on your chart, is that you are cutting out the "middle man" so to speak, which would be all the lagging indicators and junk trading robots, and are dealing directly with manufacturer of trading signals
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