#222: Why I Follow The Charts

Podcast: Why I Follow The Charts In this video: 00:33 – The KISS approach - See it in real time from the right hand side of the chart 01:36 - News becomes my opinion but the charts are fact 02:02 – You don’t need to worry about news announcement 02:38 – Have a look at the GBP charts from Monday 03:54 – I see the trade setup and take the trade 04:56 – I’ll be teaching live in North Carolina and Washington DC in June As a Forex trader, I follow what the charts are telling me. Let's talk about why that is right now. Hi Forex traders. It's Andrew Mitchem here, the Forex Trading Coach. Today is video podcast number 222 and I want to talk about why, as a technical trader, I watch what the charts are telling me and I trade what the charts are telling me. It's a really important thing. The KISS approach - See it in real time from the right hand side of the chart As a trader, I love the K.I.S.S. approach, the Keep It Simple Stupid approach, because your technical trading or any form of trading needs to be simple. It needs to be something that you can see and apply in realtime without all the benefit of hindsight. The charts do that for me. They tell me what's happening in the market right now on different currency pairs, depending on what timeframe I'm looking at, depending on what pair I'm looking at, I can then analyze strength and weakness against or for which currencies are showing strength and which are showing weakness right now. I can see which are showing exhaustion, which are range bound, which are trending, which are reversing, which are continuing. All sorts of different things that I'll look at in trading. But really easy to see it in realtime from the right hindsight of the chart and that's an important fact or an important point. You have to be able to trade from the right hindsight of the chart, look at what's happening right now in the market, when the candle is closed, make an opinion, and trust that opinion, and take that opinion. Because it's actual fact. It's what's happening in the market. News becomes my opinion but the charts are fact If I was to trade news, that becomes sort of my opinion as opposed to someone else's opinion. The charts are fact. It's where the price is right now, where it's been, its high, its low. Has it formed support at a certain level? Has it bounced at that level in the past? Is it at a round number? All these sort of things, as a technical trader, are fact because it actually happened. You don’t need to worry about news announcement I don't need to spend hours and hours studying the news events. I don't need to be at my computer just before a news event, waiting for it to be a better or worse announcement. I don't need to do any of that. I don't have to worry about the spreads or the charts freezing at a news announcement. None of that. I'll give you an example. Earlier this week, we had Theresa May, the British Prime Minister, call a “snap election” in Britain. Completely unexpected. Hardly anybody knew about it because most of her cabinet didn't even know about it. Most people did not know that was coming. Have a look at the GBP charts from Monday However, go and have a look at your charts on the daily chart. Go and have a look at, say, like the British pound, Japanese yen, or British pound, Canadian dollar, and most of the British pound pairs. But those two, in particular, were showing very good, strong bullish buy setups on Easter Monday. Now, most years you would not expect too much decent price action on Easter Monday, especially on a British pound pair when Britain shut for Easter. However, go and have a look. Go look at your charts when you finish this video or podcast. Go and have a look at your charts on the daily charts....