How to trade charts without indicators?
The majority of new traders will have a number of trading indicators erected on their candlestick charts.
From moving averages to Stochastics to Bollinger bands, they try to analyze their trade with the help of these stock indicators.
On the other hand, when you meet a proficient technical trader, he may have just a few or sometimes completely notechnical indicators erected on his stock charts. Technical indicators are lagging and they can never be used to analyze a trade.
They can be used as an added verification of a support or a resistance level only.
Moreover, two or more technical indicators on the same chart start giving contradictory information
In your share trades, it is noteworthy that you know how to read the price of the stock and take trades without any technical indicators.
Trading tips based only on technical indicators are very low prospect trades.
Trend of the stock
Finding the trend of a stock is very essential in order to place a trade. There are several technical indicators that are used to spot the trend of the stock.
On the other hand, the basic rule of recognizing a trend is that if the price of the stock is making a higher high and a higher low then it is in an uptrend.
Likewise, if the price of the stock is making a lower high and a lower low, then it is in a downtrend.
Support and resistance are horizontal levels which give you the high possibility buying and selling zones.
These are the levels where there was the maximum imbalance in the supply and demand in the past leading to a major price movement.
To identify the support and résistance levels, verify major rallies or drops and take a trade when price pullbacks to those levels.
Multiple time frames
It is possible to have a number of support and resistance levels on a specific time frame chart of a stock. But not all of them will work out.
You should therefore look at a higher time frame chart and slowly come down to a lower time frame chart glance for areas of high prospect support and resistance levels.
These above points are the chief principles of making a trade.
They are focused on the price action of the stock and let you take high prospect trades without the employment of any technical indicators.