Trade charts, or bidding without indicators, has found wide application in modern bidding, since many strategies are a bit late.
And instead of monitoring the actual state of prices, people make attempts to analyze the interpreted alarms of some indices. But on a clean chart, we see the real picture, without any distortion.
Charts trading: are there any advantages for a trader?
If you bid on a non-indicator, clean trade value chart, you will see and know what happens to the price in a specific period on a specific market.
But most novice analysts are caught into clever marketing schemes of web resources spreading off-the-shelf bidding systems, or simply make mistakes, believing that by mastering a complicated scheme using a huge number of indices, they will receive large profits. Everything looks other ways.
Commonly used indices are Parabolic, SAR, MACD, Stochastic. If we consider how bidding takes place using indices and compare it with what is happening on a clean chart, we will see that using all these algorithms in bidding makes it more difficult than it actually can be.
Why is it important to know how to analyze chart trading patterns without indices?
If one takes a chart only with pure price action and two horizontally drawn lines, meaning important levels (support/resistance),one gets a diagram, where there is less confusion. You witness a natural price move on EUR/USD. If one learns to read correctly this natural movement on a pure chart, then bidding without indices will become easy and very effective.
Bidding without indices makes the price chart more understandable. If you focus on charts with a large quantity of indices, which give out contradictory signals, you will not only not be able to think clearly and purposefully, but rather become indecisive and confused.
Main solutions for bidding on a clean chart.
For many analysts, who hear about bidding on a clean chart, the question immediately arises: "Is it possible to get income without applying various auxiliary schemes?" There are many solutions for bidding on clean graphics. Let`s dwell on the most basic ones:
- candle and wave analysis,
- bidding by price levels
- mathematical systems,
- use of patterns and price bounces.
The essence of candles` analysis is to recognize on a clean chart the resulting formations, which are alarms to conclude transactions.
While bidding only at price levels, analysts decide on a deal, placing horizontal lines on the chart. For wave analysis, the use of indices is also not required. Here we are limited to labels that look like numbers and check marks. Additionally, you can use vertical, horizontal and slanting lines that will delimit the waves on a clean graph.
Mathematical systems assume the use of a bidding system on a clean schedule based on price bounces from round levels.
Scheme "Inside Bar"
Bidding using the "Inside Bar" scheme involves the use of a single sample. The only thing that can be plotted on the chart is important levels.
The pattern in question is named “Inner Candle”. It is a bar on the chart. Its upper end of the tail (maximum level) will be lower than the previous bar, and the minimum level will be higher than the previous one.
The scheme gives equally good results, both on M1 and D1. Consequently, it is used by various kinds of chart pattern traders.