Trading without indicators or commonly called the naked trading is a trading technique based on observation of price movements only, without using the indicator above the chart. But do not be afraid first, naked trading can be learned and has its own advantages. Check out the full discussion below and also FSMsmart reviews.
The advantages of Naked Trading
The more indicators used by traders does not mean the opportunity to gain profit will be more wide open. Charts filled with indicators will ultimately find it hard to get an accurate picture of the kind of market. The use of enough indicators can actually help the trader in achieving profit targets. Instead of finding it difficult to find an indicator that suits your trading style, why not learn the Price Action and Price Pattern? You can also use candlestick patterns to support trading without indicators.
The ways of doing naked trading are as follows:
Identify Swing High or Swing Low
Swing is an inversion point above the chart consisting of High and Low levels seen around Support and Resistant. Swing identification is done by labeling each swing with 4 categories: HL (Higher Low), Higher High (HH), Lowe High (LH) and Lower Low (LL).
Define Current Market Condition
Defining market conditions does not need an indicator. You simply follow the general rule of the trending market forming Higher High and Higher Low or form Lower Lower and Lower High. If HL, HH, LH and LL are difficult to determine then market conditions are ranging.
Wait for Trading Signals Appear
Signals in naked trading form a candle formation that indicates the occurrence of reversal or breakout. To analyze price action you can use pin bar, Shooting star, Hammer Bullish or Tweezer Top and Bottom. You can customize Exit Point with Equal Waves principle based on Risk or Reward ratio without using the indicator above the chart.
Furthermore, to get successful naked trading, keep your head cool and control your emotion.