Price First, Indicators Last
The basic information gleaned from a chart w/ no indicators is so undervalued by people today because they just don’t know better. When most people look at charts they have so many indicators and overlays on them that they don’t give themselves a chance to learn to actually see price pattern. Their so quick to lean on technical indicators to help them discern direction that they start to rely on these secondary, even tertiary mathematical measurements of price before they even learn about a market’s internal structure. It’s no surprise that Welles Wilder, the father of the RSI, ADX & SAR technical indicators said that his most valuable skill was copy writing – writing ads! Now don’t take me wrong…Wilder is a real deal trader, and there is definitely a place for technical indicators, and those that measure momentum in particular, but when it comes to learning to trade, technical indicators should be taught last! Throw in people’s penchant for trolling lower time frame charts to satisfy their impulse needs for excitement, and it’s no wonder so few get to eat the lunch of so many!
Jay Norris is the author of Mastering the Currency Market, McGraw-Hill, 2009 and a Trading Instructor at Trading-U.com. To schedule a complimentary, interactive tutorial with Jay on determining market direction and hear more about “Live Market Exercise” go to One on One Tutorial
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments.