How To Learn Naked Trading

Naked trading is not forex trading without wearing any clothes, but trading without using any indicator on the chart. Are you interested? This article will discuss the concept of trading with naked chart.

Many people have discussed 'naked trading'. What is naked trading? No, it is not forex trading without wearing any clothes (erase the thought). It is trading without using any indicator on the chart. Instead, trader observes the ups and downs of price line. That sounds difficult isn't it? But why are many people interested in naked chart? Are you interested too? This article will introduce you to the concept of naked trading.

Some people said that learning naked trading is faster than learning to determine signals from any indicators. I doubt it. Even in naked, we still check candlestick to confirm the accuracy of a signal. It also said that with naked trading, we will get faster profits. Well, I don't think so. If you are fairly skilled at it, may be; but if you are not adept, you still won't get the sought-after profits. In short, whether you trade naked or not, you are still using indicator, that is the market itself.

After understanding that, we'll discuss support and resistance in naked trading. A support refers to the price that has taken place some time before, when there is a reversal from bottom to the top.

While 'resistance' is when the price reversal happen from top to bottom. How to identify this? Here is the example of resistance:

So, now we have an understanding of the meaning of support and resistance; support is on the bottom and resistence is on the top. The description below will show them to you simutaneously:

Now, how to determine when to open position from watching support and resistance ? Observe them closely. If the price isn't strong enough to pass support or resistance, it will be a reversal. If the price can pass it, it's called breakout.

After you've already known support and resistance, then you are ready to do naked trading. It is also possible to do that without candlestick. But with candlestick, you could see the high-low-closed in each period. Candlestick also show you the chart pattern more clearly. It may help you to make decisions.

Another thing that you must not forget if you trade naked, is to check market sentiment. You may have lost your love on confusing indicators, but you should understand that market sentiment is the driving force behind the ups and downs of the chart. Naked trading doesn't mean you could let fundamental calendar go.

However, naked is just one of the many methods in trading. Try it in demo, and if you are comfortable with it and able to master it, it will be your key to profit. Just remember not to trust people who said that using this or that strategy is more profitable. Strategy is just strategy, after all; the result always depends on the one who operates it, that is: you.