Trading Naked Is The Best Thing To Do!

If you have been trading for sometime then you must have known by now that the best method of trading is called Trading Naked.  Trading Naked only means trading without using indicators solely based on price action. Price action is the best leading indicator. Forget all other indicators that are lagging in nature. You must have read my post on trading naked used inside days pattern and making 700 pips in just 8 days.  Candlestick patterns on lower timeframes like M5 and M15 are not relevant and often generate false signals. But when you move to the higher timeframes like H1, H4,D1 and W1, the accuracy of the trading signals generated by candlestick patterns increases tremendously. H4 and D1 should be your preferred timeframes for trading.

If you take a look at the above EUR/USD daily chart screenshot, you find the market moving a lot. Can you make a sense of when the market is going to move big time. Just take a look at the first red arrow. There is an Inside Day Pattern. An inside day pattern is a two stick candlestick pattern meaning it takes two full days to develop on the daily chart. The second candle should be enclosed within the first candle. We got in on the first candle with a risk of just 23 pips and got out on the second arrow when a second inside day pattern appeared making more than 700 pips in just 8 days. So you can see how trading naked can give you good trades. You just need experience to know how to identify these patterns.

There are various setups that you can trade. But you only need to master just one setup in order to become a consistently profitable trader. Many traders makes the mistake of trying too many setup which ultimately leads them to analysis paralysis. Just master one setup and that’s it. Just like a pro tennis player who practices his serves to perfection and then uses his killer serves with a deadly accuracy when playing, you also need to master just one setup and practice it to perfection. Once you have mastered one setup, you can add another setup to your arsenal of trading tools. And this process can continue. A very good resource on trading naked is this website that you should read.

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