YOUR FREE TRADING SYSTEM: http://www.netpicks.com/tjgiveaway1 With all the trading indicators that are available and their ease of use (not usually successfully though), it is easy to forget that simple still works. Let’s not confuse simple with being easy though but in this instance I want to use simple in terms of price action and structure. I also don’t want to take away from the simple nature of trading indicators but understand that price is needed to make them work. So why not just go to the source? Read more: http://www.netpicks.com/no-trading-indicators

1. Can Price Structure And Action Lead The Way?
http://www.netpicks.com/no-trading-indicators/

2. With all the trading indicators that are
available and their ease of use (not usually
successfully though), it is easy to forget
that simple still works.
Let's not confuse simple with being easy
though but in this instance I want to use
simple in terms of price action and
structure.

3. I also don't want to take away from the
simple nature of trading indicators but
understand that price is needed to
make them work. So why not just go to
the source?

4. It's not that I am against all trading
indicators because I do find usefulness in a
few of them just not to dictate trades.

5. Interesting enough, whenever you
look at a trading forum and someone
posts a chart with a moving average
for example, the common question is
"what is the setting?" Does it really
matter if the setting is 20 or 30
periods?Over the course of many
trades the answer is, "probably not".

6. While the Netpicks trading systems
utilize indicators, you DO NOT trade
them blindly. Discretion is taught
during your training which enables you
to expertly pick the higher probability
trading plays that are shown directly
on the trading chart.

7. But this is not about trading indicators.
This is about structure, price, and
simply trading basics that are used
with skill.

8. The following trading charts are from a
recent trading session and as you can
see, no indicators were used for the
trading choices.

9. I am going to break down what I find
to be the important details on these
charts. Some may agree, some may
disagree but it works for me and to
me...that is all that matters.

10. The pattern of the uptrend is broken
for a swing once a LH is put in place.
The uptrend line actually originates
further off to the left of the chart but
you can see the HL after the LH comes
into the line although a zone around
the line is close enough.

12. A high is put in and then price pulls
back again in the location of the
uptrend line. The line does not actually
physically hold price but trend lines
are more or less measures about the
current "state" and volatility of the
market. There is a rhythm to price
movements.

13. A LH is put in again just before the
open. The horizontal line originates
from the left where price was
supporting in that zone and eventually
broke through. Price is now up into the
same line and appears to be showing
that sellers are willing to resist at this
price.

15. NOTE: There is much subjectivity
around support/resistance lines so I
just use areas that are obvious. If I
have to search for an area, I am not
too interested in it.

16. At the open, price slams through the
trendline, has a stall around the HL just
to the left and then falls to a more
prominent pivot area.

18. NOTE: Pivot area is not to be
confused with pivot points. Pivot
areas are simply areas where price
turned. There are major and minor
pivot areas.

19. Whenever I see a strong move in one
direction especially after a break of a
technical such as trendlines, I get very
interested.

20. This next trading chart shows the
strong move down and then
something interesting happens at the
pivot marked "A".

22. Price breaches the low and is quickly
bought up (failure test of the support
zone) and given that often times a
trend line broken to any side gets

23. a revisit of price (B), I bought into the
move once price confirmed the
direction through a break of the high
of the failure test candle.
NOTE: The trade actually gets stopped
out for scratch but is bought back
again and target is reached.

24. EXPECTED MOVE

25. Now price has done what I expected it
to do after it showed a failure to break
the pivot. It is sitting up inside the
trend line and the high of the candle is
running into a trend line off the highs
off the previous two candles marked
"A". bigger trend line.

27. Not shown on the chart but you can
also form a channel using the
downward trend line and you would
see price break through the low and
then retest just like we see on the

28. Price is also being held up at a
price zone that is providing
resistance to the bulls.
You can see in the inset box that as
soon as bears stepped in, a short
trading position was taken.

29. These are simple concepts however
they can be difficult to implement due
to subjectivity that virtually all of us
have.

30. Trading indicators are popular for
many people because if you just follow
the indicator, your emotions,
judgments, and some biases can be
removed. (although blindly following
an indicator is a recipe for disaster).

31. But let's see if we can make some of
what I covered objective.

32. - Draw trend lines from the last two/three
lows or highs
- Use pivots only when highs/lows are
taken out to confirm pivot
- Failure tests must conclude with testing
candle closing > 50% up/down the body

33. I'm sure there are a few more
variables that we can put rules around
but this is a good starting point.

34. As I mentioned earlier, I don't dismiss
all trading indicators as there are some
that are useful. Yes, even the moving
average set at the basic setting of 20
can be used to help you frame the
market.

35. This entire piece was to show that
indicators are not a necessity and you
can learn to skillfully trade using just
what you see on the chart. It's a skill
that can be learned but give yourself
time to become proficient.

36. Trading can be lucrative and it is naive
to think that a PDF and a week of
studying will have you raking in the
money the following week.
Be a professional in your trading and
on the journey towards success.