Naked Forex is a new way to trade the forex market, based on the principles of Walter Peters. Written by Alexander Nekritin, CEO and president of TradersChoiceFX, one of the largest Forex introducing brokers in the world, this book is not your typical trading manual. It is designed to give you the tools you need to make money without using indicators.
Candlesticks are a crucial tool in naked Forex trading. These small pieces of graphs can tell you the direction of a trend. Trading without indicators requires a lot of knowledge about the market and its dynamics. The smart money club usually enters the market after a candlestick has risen. This is because fast growth often leads to selling, so it is important to enter early on a growing movement.
Traders using Naked Forex trading should also pay attention to the Forex economic calendar. While some traders may stop trading when big events occur, others will capitalize on the volatility they bring. As a rule, the forex market goes in cycles. Typically, a market cycle begins at a low point, then starts moving up or down, and finishes at a high. This cycle is easily visible on the small scale charts.
Another indicator of an upcoming trend is price rejection. This is usually characterized by a longer tail and wick, with a lower shadow. In these instances, the naked trader will buy at a low price, hoping the price will rebound. As long as the stop loss is below the extreme, it will be profitable to enter the trade.
Although using indicators and data analysis is important in trading, naked trading is easier to learn than using them. It also requires a high level of intuition, which takes time to develop. The more accurate your instincts are, the better your timing will become. You should also learn to read the market rhythm. It is important to follow the market’s rhythm to avoid falling victim to a trading mistake.
Another way to learn about currency pairs is to look for price patterns. There are two types of patterns: an uptrend and a downtrend. An uptrend is characterized by higher highs than lows. A downtrend is marked by lower highs and lower lows. You should learn as much as you can about each before deciding to start trading.
Naked traders believe that human psychology is at the core of price movements. This makes market movements predictable. Consequently, learning to understand market psychology is a crucial aspect of learning how to trade naked. In essence, it is like asking people with computers if a currency is overpriced. This is the same principle that Bitcoin trading used to follow when it first started out.
Many people who do not use indicators are simply trading with high probability. They apply statistical techniques that are based on knowledge of human behavior and psychology. Hence, they can use a high probability approach to find good market positions. This technique is also known as trapped trader trading.