One of the great things about trading virtually “indicator-less” is you can see in real time what is going on with current price without it hiding behind a mess of indicators.
Naked chart reading is simply looking at a chart with next to no indicators on the screen.
If your first instinct is to check out an indicator on your chart for a trading decision, you are already a little late to the party since most indicators are a derivative of price.
This is not to say that indicators are worthless but should not be the main driver of your trading decisions.
Naked Chart Trade Example
Markets alternate between trending moves and price compression and there are opportunities to be had in both states of your market of choice.
When markets are trending, you have the opportunity for continuation moves or trend termination trading plays
Once the markets find a consolidation area, you now have the opportunity to play a support (resistance) holding or failing play.
Four types of trades and there are literally hundreds of ways you can take advantage of these trading opportunities.
In the chart below, there is a move we see time and time again because it is the nature of the markets.
- See more at: http://www.netpicks.com/naked-chart-reading/
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