Naked Chart Trading
Naked Forex trading or naked chart trading can also be known as ‘price action trading’. Chart trading is based on candlestick and price chart patterns. Entry decisions are based on the analysis of candlesticks and charts without any indicators. Learning to read charts and candlestick patterns is a crucial part of learning how to become a successful forex trader. Experience traders would recommend learning how to trade naked chart before learning how to use indicators. It can be hard to learn how to trade without enough expertise in identifying and analyzing price patterns. Knowing how to identify naked charts and candlestick patterns should be one of the traders’ first things to learn. Before you attempt naked forex trading, make sure you have a good understanding of the different types of candlestick patterns and chart patterns and what they mean.
Naked Chart Candlestick Patterns
Candlestick patterns are one of the most powerful trading concepts, they are simple, easy to identify, and can indicate very profitable setups. Research has confirmed that candlestick patterns have a high predictive value and can produce positive results. Learn and practice candlestick patterns to gain a skill that will help You to enter and exit the market the right way.
Naked Chart Price Patterns
Forex chart patterns are price action patterns with a higher probability of moving in a particular direction. Trading patterns give great insight to price action traders that use technical chart analysis in their Forex trading decision process. Forex traders take advantage of upcoming price moves by identifying chart patterns. Forex trading patterns are part of groups based on the potential price direction of the pattern. In Forex technical charting there are three classified groups of patterns :
Continuation Chart Patterns
The trend continuation chart pattern appears in trending price. If a continuation chart pattern appears during a trend, the price correction indicates that a new move in the same direction is likely to occur. Some of the most popular continuation chart formations are pennants, flags, and corrective wedges.
Reversal Chart Patterns
The trend reversal chart patterns appear at the end of a trend. The trend reversal chart patterns indicate the end of a current trend and possible reversal with the confirmation of the formation. The most popular reversal chart patterns are: double (or triple) top/bottom, head and shoulders, reversal wedges, and expanding triangle.
Neutral Chart Patterns
Neutral Chart patterns formations indicate the price to push into the new move but in an unknown direction. Neutral chart patterns appear during trends or non-trending periods. Neutral Chart Patterns are difficult to spot but are quite valuable.
Naked Chart Trading Summary
So Naked Chart Trading gives amazing opportunities with market moves prediction. Knowing where the price is heading but also when to enter and exit the market is vital for all naked chart traders. Naked Chart Trading is important for all types of traders. It may be best to start trading with indicators first and then move on to naked forex trading. Use indicators and trend lines and support and resistance levels to be completely sure it is safe to trade. practice in a demo account or simply watch the market and see if you can predict what movements will occur based on your candlestick knowledge and chart patterns. It takes a lot of time to recognize the way the market will likely move and You also need to rely on your intuition which can take a long time to develop.