To be really sincere, making pips in forex is subjective to just one indicator; Price action. I really see no need clustering the charts with so many indicators that we really don’t follow probably as a result of price action at that particular time. Remember, we are emotional traders, right?
Making money trading the forex market is probably less feasible if we don’t device a means of understanding the signals that price action tell us.
Now, lets site an example.
Trading the GBP/USD, lets assume the pair begins to rally with GBP gaining ground and probably you are long the pair. You get excited, you are gaining and suddenly if you look well enough, you notice the strength in the GBP lagging but your indicators still confirm the trend, so instead of taking your profits at that time, you probably leave the trade open and suddenly before your very eyes and even before you could say “Jack” the tide changes, with you licking your burnt finger, meanwhile the obedient indicators just follow suite at that last minute change. Poor you..
Now, you might say, what does he mean by this? Following our indicators are probably the best options, but what is safer is looking at the price action at the moment in conjunction with those indicators.
In my chart, I have a SMA100, I have tested and seen that when prices breaks through it (upwards or downwards) there is always a rally but having looked closely at price action, I have come to the conclusions that it is not always so. So many times prices have broken through, only for the reverse to be the case.
Want to make money trading forex? Be attentive to price action! I cannot but repeat this again and again. I have also said this several times, in other to be at the right trend and early enough say 70% of the time, learn to consult longer time frames. It earns you more. Success to you out there.
Want to trade the forex market profitably? Bag more pips and enjoy your vacations? Then, always look to price actions.