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If you’re curious about getting a deeper understanding of how to trade the forex markets, you’re going to have forget about all those lagging indicators that you’re using.

If anybody uses an MACD indicator on their chart, can they really claim to have a stronger understanding of the markets, by doing so?

I?m sure many of us understand the rules on how to trade the MACD, but does anybody know what the indicator means to the overall scheme of the markets? Probably not.

If you’re using indicators like these, they may seem like a faster way to understand the markets, but that’s just not true. What the indicator is really doing, is just being your translator. It may seem like a great idea, but all it is doing is interpreting the market from its own parameters so you see it only through it’s eyes, not your own.

YOU should be the translator. The market shouldn’t have to be translated for you. It’s like going to live in a foreign country for a year. You could probably always find somebody who spoke English, but to really be able to live and enjoy the culture, you are going to have to learn to speak the language. It’s the same case with trading forex. Except the language you have to learn is price action.

If you want to learn this language, the first thing you need to do is go to the charting system you use and get rid of every single indicator you have on them. Then pick your favorite currency and watch all the price movement for the day.

I know some of you probably think, that doing some like this will not lead to anything great. Well, if you have that attitude, then it probably won’t. However, if you have an open mind you’ll start to see that price pattern repeat constantly and that can be used to trade the markets.

If you don’t believe this is possible, just Google Jesse Livermore. He is a famous stock trader from the early 1900s who was able to become rich just by trading the price action on the market floor. If he could trade price action without even using a chart, you have no excuse.