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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 positive we all know how to use an MACD indicator, but what does it mean to the overall price movement and direction of the market? Most don’t really know.

While these kind of indicators may seem like a fast way to learn the markets, the truth is you’re not really learning anything about the market. You’re just using an indicator as a translator. The translator is the indicator interpreting the market and reading it back to you. This may seem like a great thing, but it is doing you a great disservice.

You’re the one that has to be the translator, though. The market shouldn’t be interpreted by some indicator. For example, if you moved to a foreign country for a year, aren’t you going to at least try to learn the language. Sure, you can probably find people to translate for you, but do you really think you’re going to enjoy living there if you do that? Well, it’s the same exact principle in forex, except the language is price action.

The first thing you need to do to learn this new language is get rid of all your indicators that you use to trade with. Don’t leave a single one. You’re only cheating yourself. Then, pick a currency and just watch it for the day.

I know this may not seem like you’re going to learn anything, but you are. You are going to be able to see that price patterns get repeated and pretty soon you?ll be able to forecast future price movements.

If you don’t really think its possible to do this, then research the name Jesse Livermore. Livermore became rich in the early 20th century by just trading on the market floor. All he used was the price action from the other traders on the floor to base his trading decisions off of.

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