Price Action Relief of Trading Naked Charts

Going back to basics with Price Action

In the past couple of months, we’ve all seen the emergence of various news events proceeding to cause a flurry of seismic shifts in the market. As a result, millions of trading systems are put to the test. I say this because mostly all trading systems out there rely heavily on trends and volatility. Even my own DeepSpaceFX Daily Chart strategy relies heavily on clear trending markets. Particularly, those that are built around various indicators, signals and automated EA’s. Without a clear trend in place, traders are bound to receive false signals based on whipsaws in the market if relying on said systems. However, naked chart price action has been proven to be the most efficient and resilient way to trade the markets no matter what the conditions.

 

DeepSpace Forex Price Action

 

Why Price Action feels like “a breath of fresh air” when Trading Forex

 

Don’t get me wrong, Price action trading is not the end all be all strategy. There are many strategies out there including at least a few indicators that are highly effective and successful. But there are also a lot of indicators out there that have been put in place to deceive and manipulate traders into trading a lagging market. It’s usually the novices who lack the capacity of experience to decipher the good indicators from the bad. Sometimes, as a trader it helps to take three steps back, go backwards beyond ego and go back to basics. Basics meaning Price Action.

 

“Essentially, trading Forex is like going to war. You either go into battle well prepared, with armor and weapons and ammunition to use against your enemy at your disposal, or you go into battle helpless and defenseless.”

 

But the real question is, If you’re going to war, would you buy your armor and weapons FROM your enemy? The easy and short answer is NO, you shouldn’t. You build your OWN armor and weapons, obtain your OWN ammunition and wage war against your enemy. In the Forex wars, most of us have failed to grasp this simple concept. Allow me to explain.

 

Price Action Forex
In the comedic realm of the Forex World, we refer to this as a “Christmas Tree” chart

 

Imagine trying to trade the chart I posted above, intraday, day in and day out. Which indicators would you use to signal your entry and exit? Which indicator determines the trend bias? In what order would you base the indicators as per your trade entry rules? Now imagine how intimidated a novice trader would feel trying to learn these various indicators to help aid them in their trade decisions. It’s no surprise why 90% or 95% of traders lose money The very terminals and indicators we use and the apparatuses furnished with them are given to us by the Market Makers themselves. They situate on the opposite side of the glass and they all see what we do. They know our propensities and the armor and weapons that they are equipped with is much more superior to us in this Forex War. They know all of the traps in the book. They know every one of the instruments we use and they utilize those apparatuses against us!

How often have you seen a support/resistance line or Moving Average being broken, with a trade request, only to see the trade turn around and head the opposite direction?Frustrating right? The Market Maker knows where each trade is being placed because they have access to the overall market flow.

 

The Relief of a Clean, Naked Price Action Chart

DeepSpacefx Naked Chart
My clean naked chart with NO indicators. Not even an Moving Average. Just simply Support & Resistance lines/Zones drawn on higher time-frames. This is my own chart perspective of how I trade Forex naked Price Action. On the higher time frames, starting with the Daily Chart down to the 1hr chart, I simply draw support and resistance lines (white lines) at the major swing zones. Meaning, pivot points where price has stalled and pivoted. Then I draw aqua blue boxes around those same white lines to indicate zones. (click for larger view)

Daily Chart 

Daily Chart Price Action
The white arrows above indicate every swing pivot point on my Daily Chart. As you can see, I start from the top of the chart and make my way down.In most cases, these key zones form at a long candle wick either to the upside or downside (for ex. the bottom most arrow in the photo).  These are key areas where price has stalled, and then re-coursed either in the direction of the trend or a counter trend retracement.  (Click for larger view)

 

4Hr Chart 

4R support and resistance price action
This is my 4HR chart, going down from the next higher time-frame (Daily Chart). I have drawn a few more support and resistance lines and zone boxes at key swing pivot points. The yellow arrow indicates a long candle wick to the upside as mentioned in the previous photo.Which is a strong indication of price rejection and reversal. (Click for larger view)

 

1HR Chart  (Last chart for plotting S & R Zones.)

1HR chart
Here is the final 1HR chart with the support and resistance lines I’ve drawn. The yellow arrow indicates a pin bar wick to the upside. As you can see, price has respected previous support and resistance lines on the 4HR and Daily Chart.  (Click for larger view)

 

15min. Chart For Entries/Exits

15m chart
And lastly, my 15min. chart used for entries and exits. Although the 15min. is a lower time-frame, it allows me to get in trades much earlier than I would on a higher time-frame. Also, I can manage my trades and hold them from key-zone to key-zone for longer distances and maximum pip opportunity. (Click for larger view)

 

Breaking down the current market for your desired pair using an unadulterated, naked chart without extravagant indicators is an art-form in itself.  The standout among the best methods is to dependably consider this while applying your Price Action trading style. To trade Price Action adequately, you would need to think about what is known as Market Circle or Market Wheel. This is something that drives value, utilizing different examples. But I’ll save that for an entirely different blog post.

It is significant that you get acquainted with Forex Market Order Flow, Candlestick Patterns, Levels, Stop chase, Area of Interest, Accumulation phase, Breakouts, False Breakouts, Stop-hunts, Whipsaws, Price zone, e.t.c I could go on and on and on….

 

Go along with me and learn how to exchange the market emphatically here on the DeepSpaceFX blog. Thank you for reading!

 

Check out my new E-book if you haven’t already done so!

The DeepSpaceFX Price Action Strategy – A Super Simple, Foolproof Method for Trading Naked Charts*** (Click photo below)

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-Brandon Peoples

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