When it comes to finding the best forex trading strategies, all you have to do is look no further than price action. The strange thing is that most traders never really consider price action, Most of them just prefer to slap on a couple of indicators on their charts and be content with just using that as their basis to make their trading decisions.
These traders should understand the limitations that these indicators have. I know it’s a lot more convenient to just use indicators blindly, but they do a lot more harm than good.
For example, let’s take a look at moving rates, since most traders like to use them. What most traders do, is put a couple of moving rates on their charts, and trade whenever the moving averages cross each other.
A red flag should be going off in your head, letting you know that something is definitely wrong, trading like this.
Have you noticed that you do not even have to look at the price to trade like this. You can just mechanically trade every crossover without even notice what the price is doing. So instead of focusing your attention on the most important part of technical analysis (price), your attention is on a couple of random and arbitrary lines on your screen.
Instead of doing this, you should be training your eyes to see what the market is trying to show you. The market has a real energy, and it can be seen through its price movements and patterns.