Trading naked

Ever hear about naked trading?  It ain’t what it sounds like.  “Naked” trading is the medthod of using candlestick price charts without all the indicators:  no MACD, no or very few moving averages, no stochastics, just price — pure and simple.  Price is king, and when you have the courage to take all the flim flam of indicators away you can actually see what is occurring to price much easier.  Afterall, technical indicators are all lagging indicators, and while they can help the trader in different ways, if you can dumb down your charts to the bare minimums, life and trading can actually get easier, especially for beginners, because many tech indicators can confuse the situation.  When I trade naked, eh hum, I still plot my trendlines.  Trendlines are my most important thing to have on the charts, price is attracted and repelled by these lines, perfect for entries and exits.  Trading naked really forces the trader to learn what the candlestick patterns are telling him, since there isn’t much else to look at.  Attached is a 5minute USDJPY chart that I trading this evening during Asia open.  USDJPY remains in a very strong down trend for months now, important to know the overall trend before drilling down to less than a 1 hour chart.  As the Asia session got going, it is easy to see how price respected this minor supporting trendline for many candles, about an hour.  I waited for a break of this line to enter a short trade on this pair.  This was a very typical break, then retrace up, then break and break of the last low.  Entry was at 89.40 and a stop placed above this line at 89.60.  In just 30 minutes I was able to book 30 pips.  I like to look for wicks to confirm hesitations in price.  Here is a great site to hone your candlestick pattern skills at www.babypips.com.  Good trading.