WHY ‘LOOKING LEFT’ IS AN IMPORTANT FOREX TREND INDICATOR
‘Look left’ to find clues on where to enter and exit the market in your search for profitable trades in the Forex market. With this simple and effective Forex trend indicator, you can keep your chart clean.
We need to look at previous chart data to seek clues on where to enter the market for profitable trades. These clues can include key levels, previous market reactions, and to where the instrument is heading.
Support and resistance
When looking left, we are able to identify the key areas of profit-taking. When a market is trending, it is even more important to look left at the support and resistance levels as they change. Dynamic support and resistance levels are common in technical analysis of the Forex market.
Previous resistance becomes support and vice-versa, previous support becomes resistance. All you need to spot these levels is the prior charting history!
Looking left vs indicators
Too many indicators on your charts can lead to a situation of conflicting data; one indicator might indicate a buy is necessary and another one may indicate a sell. This type of messy chart can result in confusion for a Forex trader, leading to loss or no trades.
Overloading a chart is common among new Forex traders. They learn as many Forex trend indicators as they can, then put them all on one chart. This strategy always provides mixed signals, confusing traders and causing them to acquire the incorrect trading positions.
What if the most effective Forex trend indicator is price action itself? If you wish to make the most from Forex trading, all you need to do is LOOK LEFT!
Supplement your back testing with an occasional Forex trend indicators
Now you know what to look for in price action to induce entry or exit levels for your trades. You can now use one or two indicators to supplement your price action strategy.
Without adding all the indicators in your charting platform without reason, find a Forex trend indicator that confirms and compliments your entry and exit levels. Do so by back testing it along with your new price action trading approach that matches your style.
If you see a price action entry idea confirmed by an indicator entry signal, you may increase your chances of profitable trades if it aligns with your bias.
The earlier you prepare while using price action as your main indicator, the sooner you will mature as a Forex trader! So, before you make your next trade, remember that looking LEFT is a highly effective trading strategy. Remember that price action is the most significant Forex trend indicator regardless of your trading style.
Looking left increases confidence
The more ambitious swing traders will analyse the best timeframes, looking back as far as possible seeking out the largest trades. It is important to look left on all timeframes and review the value action short term, but you must also utilise the monthly and weekly timeframes to determine how long you will hold your trades.
These timeframes are the most respected when involving price action. Some Forex traders are able to hold a trade 100 pips longer than others, or get out 30 pips earlier, but the most important strategy among all traders is to journal all work and constantly adapt as a trader.
Forex trend signal indicators conclusion
Looking left is the simplest sort of chart breakdowns. However, traders can miss out on vital info when live-trading in Forex. Keep the chart clean and look left on the upper timeframes to bypass your trading bias and boost your overall performance.