I am Hector, founder of One Good Trade. A very warm welcome to our trading community here for trading stocks, CFD, Indices, forex and commodities. My personal approach to trading is Price Action Trading, which is simply the analysis of charts based on price , rather than on indicators which are lagging since they are derivatives of price. However, I do add a couple of moving averages to help me identify dynamic support, resistance and market trends.
CLEAN VS CLUTTERED
Price action on a chart reflects all variables on the market at a given point and below show two charts. First, we have a pure clean price action chart with no indicators except price candles on it. The price movement on the chart will provide all the signals you will need to trade a high probability setup. This is what we call Price Action Trading.
The second chart shows a cluttered chart with additional indicators like Bollinger Bands, RSI & Directional Movement added. Taking these lagging indicators into consideration add uncertainty as they increase “noise” and create more false signals.
If you have just started trading or is looking for strategies to improve your trading performance, you may like to sign up as a client of Hector to study the free online Price Action Trading course.
This will help you understand the trading ideas and concepts that are posted on One Good Trade. Also, as a client, your access to the posts is not restricted to Trading Ideas and Trading Articles, but the full member’s content including Trading SG, Trading HK, Trading US, Trading Indices and Trading FX.