Summary
A strong advocate of chart trading without using indicators. The point of view is not new, as it is the practice for majority of successful professional daytraders. It is, however, first time a book coming out to say that trading can be done with simpler and well defined trading plans based on several chart patterns only. I recommend this book to forex traders who find trading with indicators too confusing to follow.
Book Information
Naked Forex: High-Probability Techniques for Trading Without Indicators
Written by Alex Nekritin and Walter Peters
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Review
The book focuses on forex trading only. It starts out on what forex trading is and what the norm is for forex traders (i.e. indicator trading). The authors wasted no time and jumps into the discussion of the weaknesses of the standard technical indicators.
The 2nd chapter of the book is actually the more interesting part as it talks about biofeeback. It gives the readers a clear picture how their reactions to their trades actually shape the way they trade going forward.
The main part of the book is on the several basic patterns the authors find to be consistent in the forex pairs they traded. They have given the patterns their own names. Could be something Australians like to do? Clear definition on these patterns are provided with the engagement rules. So it is quite easy to follow.
Part of the book is spent on discussion of backtesting and how to do that properly which is pretty standard material.
The rest of the book discuss about developing your own trading system / plan and a touch on the psychological issue of confidence and risk management. Not indepth discussion on these subjects. More like a tour guide.
Overall the book covered all the grounds on trading forex and gives the readers a reasonable trade plan in engaging the forex markets. Some people prefer trading with indicators. Some like trading off the price patterns directly. This book offers an alternative approach to the usual one suggested by many forex brokerages that is likely to work better if you can straightly follow the risk management rules.
A book worth recommending to beginners.
p.s. The book is on the pricy side. So find a used copy or borrow that from the library if you can locate one.
I wrote a review on Amazon a few weeks ago. We’re almost entirely in agreement–almost creepy.
Let me look up your review 1st. =)
Found it. Make sense.
We’ve been around long enough and looking from the other end (i.e. those who found their own consistent ways) would sound similar. =)