If you are really interested in learning about how to trade the forex markets, you’re going to have a hard time doing so, by using all of those forex lagging indicators.

If anybody uses an MACD indicator on their chart, can they really claim to have a stronger understanding of the markets, by doing so?

I’m positive we all know how to use an MACD indicator, but what does it mean to the overall price movement and direction of the market? Most don’t really know.

If you’re using indicators like these, they may seem like a faster way to understand the markets, but that’s just not true. What the indicator is really doing, is just being your translator. It may seem like a great idea, but all it is doing is interpreting the market from its own parameters so you see it only through it’s eyes, not your own.

YOU should be the translator. The market shouldn’t have to be translated for you. It’s like going to live in a foreign country for a year. You could probably always find somebody who spoke English, but to really be able to live and enjoy the culture, you are going to have to learn to speak the language. It’s the same case with trading forex. Except the language you have to learn is price action.

The first thing you need to do to learn this new language is get rid of all your indicators that you use to trade with. Don’t leave a single one. You’re only cheating yourself. Then, pick a currency and just watch it for the day.

Pessimists probably think that doing this will not lead to anything, but if you take the time to do this , you’ll start to notice that price patterns can be repeated and forecasted. This is the real holy grail.

If you don’t really think its possible to do this, then research the name Jesse Livermore. Livermore became rich in the early 20th century by just trading on the market floor. All he used was the price action from the other traders on the floor to base his trading decisions off of.