Clean Forex Charts Make For Better Trades
Welcome back!
(This is just an example chart… so don’t waste your time trying to figure out the indicator combination)
If you are like me, there has been times where your Forex trading chart is loaded with tons of indicators, colored graphs and squiggly lines. It is hard not to get caught in the trap of looking for the right combination of Forex indicators to give us the edge and increase our win rate. But more often or not, the results are the exact opposite of what we hoped for. In a minute, I’m going to show you what my trading chart looks like now… and why I think a clean Forex chart makes for better trades.
But first, I want to tell you where this “clean is better” idea came from…
Over the past couple of weeks I’ve been going over everything inside Learn Forex Live by professional Forex trader Hector DeVille. If you have ANY desire whatsoever learning how real professional traders trade, then you should take advantage of Hector’s free DVD and 14 day trial offer. I got in with the expectation of canceling my subscription before the trial period was up, like I’ve done with a lot of similar sites, but I’ve decided to stay in.
Why?
Frankly, I’ve learned more about successful Forex trading during the 14 day trial than I have surfing the web, buying ebooks and watching free videos COMBINED! And this is with access to only a FRACTION of what Hector has planned. I think part of the reason is the learning experience is so well planned and presented in VIDEO that it makes it impossible not to learn methods, tips and tricks that make me a better trader. Plus, Hector uses a lot of real LIVE examples, which really bring the trading strategies he teaches to life.
One of the first things Hector teaches is that common indicators really don’t work all that well, and are actually distracting traders from what really matters… PRICE ACTION! More often than not, Forex traders become nothing more than “indicator followers” and therefore don’t ever learn how to read PRICE ACTION correctly. This is one of the reasons there are a lot of struggling traders out there.
Now, that does not mean that ALL indicators are bad indicators. As a matter of fact, Hector gives away some of his most powerful Custom Indicators. But what I’ve learned over the past couple of weeks is that these indicators aid in reading Price Action… and are not a substitute for it like other indicators.
As I said above, Hector provides the Custom Indicators and Chart Template to be used with the MetaTrader4 platform. Here is what my chart looks like now…
OK, I know you might not be able to see it that well, but I just wanted you to get an idea of how CLEAN it is. I’ll be honest, this is a lot cleaner and easier to read than my previous charts loaded with indicators. And by applying the trading methods Hector teaches… a whole lot profitable as well!
I’ve placed some letters on the chart and I want to go over some of the details…
A. You’ll notice a shaded box. The box surrounds the entire trading day’s activity and is shaded blue if the market went up, and red if the market went down. This is a quick visual reference that shows what price is doing over each trading session.
B. These dotted lines represent Support (blue) and Resistance (pink) levels. These are generated automatically according to how price is moving. This automatically bring your attention to price levels that need to be kept track of… either to use when determining Entry levels or Take Profit levels.
C. Swing High and Swing Low indication arrows. These blue and red arrows are not indications to buy or sell. They mark the major swing high and swing low areas. This is great to get a quick understanding or which direction the market is moving and whether the market is trending or in a range.
D. This is an ATR (Average True Range) indicator. This show how much the currency pair usually moves, and how much it has moved so far in the trading session. This is great to help determine whether a trade has the potential to move as much as you would like, or possibly done for the trading session.
E. To the left of the “E” you’ll see some horizontal lines (dark and light) at the top and bottom of the trading day. These are actually visual representations of the Average True Range. This is essential for Intra-Day trading and knowing where you are in the market for that trading session.
F. These are 0 and 50 lines. As you may or may not know, round numbers like 100 or 50 are psychological barriers. So, these lines represent potential sticking points in price action.
G. Short Term Market Momentum. This is a visual representation of which direction price is moving (for the chart you are using).
H. Long term Market Bias. This is the direction price is moving over the long term. So, for example, if you want to trade only with the overall market direction… you should only look for trades when these two indicators are in agreement.
Wow… even though the chart looks very clean, there is a LOT of valuable information there to help you make trading decisions!
Like I said, Hector gives you all these Custom Indicators and even a Chart Template so you can make you charts look exactly the same. But more importantly, he teaches how to read the charts and trade like a true Forex professional. After going through the Beginner Forex Module and Swing Trading Module, I’m convinced this is the best Forex learning experience I’ve had to date. I can’t wait to learn the other Forex trading strategies Hector teaches in later Modules!
I think one of the best things I’ve done is stop relying on some “magic” combination of indicators and settled in to LEARNING how to trade Forex. Hector’s teaching has an injection of knowledge and confidence for my manual currency trading. If you want to learn what I’ve learned, and set your charts up like I’ve shown here, just sign up for the 14 day free trial period. Everything you need to become a more consistent and more profitable Forex trader is inside!
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