John Templeton has been a successful forex trader after getting a proper forex trading education. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
The idea of trading support and resistance is really interesting. Many traders want to learn more about it, while other traders think that they are trading it, but the sad truth is they are not doing it correctly.
The importance of these areas are that you can buy or sell in the most advantageous opportunities. This helps bring confidence to a trader, because they know that they are quintessentially trading with the "buy low, sell high" mentality.
If you've traded a while, you've probably have run into these indicators that automatically lug support and resistance lines on their charts for them. The indicators form these support 1, 2, 3 and resistance 1, 2, 3 lines on the charts. These are terribly inaccurate.
All these are, are just mathematical formulas. This has nothing to do with support and resistance, any more so than just randomly choosing a price and proclaiming it as support or resistance. There may be some coincidences where the price will stop in these areas, but that's all they are: coincidences.
When it comes to successful traders, they can just see support and resistance. They don't use indicators to tell them what they already know.
All it really takes to achieve this, is to see the market from a new set of eyes. You have to understand the markets movements. The more volatile the market moves, the easier it is to spot support and resistance. The more stagnant the price movement is, the harder it is to spot. Start today by getting rid of all your indicators, and sit down and watch (really watch it) the market. You'll be amazed at what you'll find.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Trading Support and Resistance - Why It's So Important
- Forex Day Trading – Trading Support and Resistance for Profits
- Trading Stocks With Support And Resistance Levels
- Forex Day Trading: Top 7 Checklist When Using Support and Resistance
- Profiting from Support and Resistance in the Forex Market
- Support and Resistance - The Greatest Trading Tool
- Lines of Trends, Support and Resistance
- Forex Trading Education - How to Use Support and Resistance for Big Profits
How Does a Health Insurance Office Visit Co-Pay Work?
By: Pinki Gupta | 09/11/2009When it comes to finding health insurance mark the great state of Kentucky the options are limitless.
Advantages and Disadvantages of Private Health Insurance
By: Pinki Gupta | 09/11/2009Life insurance can betoken multiplex to understand, especially when unaffected comes to how the premiums are calculated.
You and Real Estate Investing
By: James Gossette | 09/11/2009Investing in real estate is one of the greatest ways to spend your hard-earned savings.
Compound Your Way To Wealth With Commodity Trading
By: Andrew Abraham | 09/11/2009I have had countless conversations with investors and even institutional investors that do not believe that commodity trading and trend following can compound ones money to wealth. Besides the fact that only trend following and commodity trading are the most liquid, the most transparent and most highly regulated industries the common belief commodity trading is risky. Well the truth is, everything is risky.
The House Rehabber And Seller Rendezvous
By: James Gossette | 09/11/2009The Internet has become a powerful tool for those in real estate investing. A rehabber can now search for properties to flip online.
Searching Investment Properties The Easy Way
By: James Gossette | 09/11/2009Finding investment properties at a time a lot of people are discovering real estate investing can be a headache.
Inspecting Fixer Uppers Set For Rehabbing
By: James Gossette | 09/11/2009Inspecting Fixer Uppers Set For Rehabbing If there’s a phase of rehabbing that you must be vary careful in, it’s during the inspection stage.
How to Wholesale Houses
By: James Gossette | 09/11/2009If you are considering a change of career, you might want to consider becoming a real estate investor.
What is Trading Naked All About?
By: John Temp | 14/07/2009 | Currency TradingIt's possible that you may have heard of the phrase "trading naked". If you are like most people, you can't help but wonder how is that going to help your trading. Well....get your mind out of the gutter. It has nothing to do with trading without clothes. It's all about trading without indicators.
Forex Scalping - What to Expect Without Indicators
By: John Temp | 14/07/2009 | Currency TradingIt's no secret that many traders prefer forex scalping over trading longer term. Some folks just like to be in and out of the market two or three times in a day, instead of buying and holding a trade for weeks on end. There is nothing wrong with using a forex scalping strategy, however many traders don't realize how much riskier it is compared to long term trading.
Are Traders Actually Making Money Trading Forex?
By: John Temp | 14/07/2009 | Currency TradingI know that there are a lot of forex traders who are losing money. I'm sure it's only natural for them to think "Are traders actually making money trading forex?" I can see why they would feel like this. After all, when you are taking one loss after another, how could you not? The truth is there are people making money, however 95% of forex traders are losing money.
The Best Currency Trading Strategy
By: John Temp | 14/07/2009 | Currency TradingIn my opinion, the best currency trading strategy is, sadly, a strategy that is extremely underused. Ironically it's also one of the oldest trading methods around. I'm talking about trading with price action. It's as old as the stock market itself. If you don't believe me, just research traders like Jesse Livermore. He was a floor trader during the beginning of the 20th century. He became a millionaire trader (much more difficult at that time) just by following the price movement of the und
How to Make Money Forex Trading by Taking a Different Approach
By: John Temp | 11/07/2009 | Currency TradingNo matter where you turn, there is somebody out there looking for a way to make money Forex trading. Unfortunately, not too many find success, if you go by the statistics. In fact over 95% of people who try Forex trading end up losing money. That's a pretty big gap between success and failure. What's the difference between the haves and have-nots?
Learning to Day Trade and Avoid the Mistakes That Others Make
By: John Temp | 30/06/2009 | Currency TradingI know that the concept of learning to day trade probably intimidates a lot of people. Obviously they don't want to make the same mistakes that other people make, but they love the idea of making money from home, and telling their boss to shove it. But they feel that it takes an expert to be able to day trade successfully. Somehow only the "experts" can grasp the intricacies day trading.
I've Got a Forex Secret to Tell You
By: John Temp | 29/06/2009 | Currency TradingI know that there are a lot of Forex traders who are struggling to make those pips, so I've got some wonderful news to tell you. I'm going to show you a Forex secret that most people aren't aware of. Hold onto your hats, because this is going to blow you away. You ready? Because here it is: