If I can give you just one forex trading tip, it would be to stop using indicators. I can only speak from my own experience but indicators like Moving averages and Stochastics are great if you want to know what has already happened in the market. If you are interested in where the price is headed, that's a different story altogether.
The problem that I was having with indicators is that it just didn't give me any insight to the market. It was like the cliffs notes version of the forex market. I'm not saying they are absolutely useless. But then again, do you think that you are going to pass a college level course on Shakespeare, just by reading Cliffs Notes? No way! It's no different in the forex market. You are going to have to get your hands dirty, if you want to succeed in forex.
It all starts with understanding the market. You should think of it like this, if you can't explain to somebody why the market is going where it's going, then you shouldn't trade it. By this, I don't mean because two moving averages crossed over each other. That doesn't really mean anything. You think the institutional banks really care about a couple of moving averages? I doubt that very much.
The answers are all there in black and white, on a basic price chart. There have been price patterns that have been repeated over and over again, ever since the first share of stock was traded. Once you see it with your own eyes, you won't believe how its been staring you right in the face all this time.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
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