Forex Trading Robots, Systems and Courses Reviews

by Edward Lomax

Most Forex traders are taught Forex the same way… with indicators. When you look at a trading chart, it is usually full of squiggly lines, colors, arrows and waves. And can you really make decisions with so many conflicting indicators? Come on, don’t lie… your chart looks like a kaleidoscope right now, doesn’t it?

I’ll be the first to admit… I tried many an indicator. Like many of you, I thought I could come up with some magic combination that would make Forex trading simple. But one of the biggest problems I faced was the indicators I was using were all "lagging" indicators. They tell you were price has been. But what I learned from Tom Strignano recently, a retired Bank trader of over 25 years, was that to be successful in Forex, you need to focus on forward indicators. Here are some important lessons I’ve learned…

#1 Get Rid Of All Your Lagging Indicators

Tom Strignano makes it clear he is no fan of "public" indicators. They are "public" indicators because they come with just about every trading platform. (Your chart is probably full of them right now… Moving Averages, MACD, Stochastics, etc.). The basic reason Tom hates these indicators is because they are LAGGING indicators.

A lagging indicator is good at telling you what price has done in the past… but not necessarily accurate at helping you predict what is going to happen in the future. And since past movement does not guarantee price will move in the same direction, these indicators are worthless. And I know, this might be a tough pill for some of you to swallow.

Tom Strignano believes success in Forex comes more from reading PRICE ACTION than anything an indicator can tell you.Price Action, or what price is doing right now, is the best way to look at the market. And through some proprietary calculations, Tom can figure out where price is likely to go. And focusing on these forward indicators is what sets you apart from other traders. (You know? The ones losing money!)

#2 Start Using Forward Indicators

OK, what is a forward indicator?

Forward indicators are levels where price is most likely to go. They give you a clue as to where price is being drawn to, or will possibly be rejected from. Do you think you would be a better Forex trader basing your trading decisions off this valuable information?

You might be familiar with some of these like Pivot Points and Support & Resistance Levels. But the difference with the levels you are probably used to and the ones Tom uses is that his are calculated from a proprietary formula he created while working as a Bank Trader. His levels look at levels the Banks look at, which is the most important levels if you what to know what the big boys are doing.

#2A Market Exhaustion Points

Market exhaustion levels are another calculation Tom uses. It predicts areas where price is most likely to lose momentum. This is a KEY area to pay attention to price action. If price starts to stall, you might want to exit the trade, move your stop loss up, take partial profit, etc. But the point is, without these calculations… you would be trading at a disadvantage.

How many time have you placed a trade only to see momentum die out shortly after? You probably just traded into one of these exhaustion levels. Wouldn’t your trading be better if you knew these levels in advance? You see… Forward Indicators!

#2B Trend Reactionary Numbers (TRN)

These are very strong levels where the market usually reacts by bouncing off, or breaking through. When price bounces off one of these levels… you can be pretty sure it is heading for the Trend Reactionary Number below. When price breaks through one of these levels… you can be pretty sure price is going to move to the next one. These major target areas are incredible because they provide targets for profits of HUNDREDS OF PIPS. And when you see these placed on a chart, it is amazing how price reacts at these areas!

In conclusion…

The point is, if you want to make consistent profits as a Forex trader, you need to start looking at the market like a professional trader. This means making important decisions at key areas the big institutions look at and react to. Other traders are using their lagging indicators to make decisions off what price has done in the past… and as a result, make poor trading decisions. What I learned from Tom Strignano is you need to use forward indicators to plan your trades and make decisions based on what price action does at these areas. Successful traders don’t look into the past, they look forward and therefore make higher profits.

This is why I stripped my charts of unnecessary lagging indicators. They are now much cleaner and easier to read price action. Now they basically have forward indicators at major decision making levels… which has effectively become a map to higher profits. In the end, forward indicators and price action are the real edge of a successful Forex trader.

About the Author:

Start looking at your Forex charts more like a professional trader like Tom Strignano. Then you will see how important price action forex trading is and how it can help you become a better trader.

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