The retail traders believe in the complicated trading strategy. They don’t want to trade the market with a simple method. On the contrary, smart investors always rely on a simple approach. You don’t have to use rocket science to earn money in the Forex market. Many smart investors in Australia are making a decent profit with some basic knowledge of the Forex trading business. Instead of using the complex strategy, they are just trading the support and resistance level with a high risk-reward ratio. Success doesn’t require complicated trading methods. You have to keep your trading chart clean and look for quality trade setups. Let’s find out some of the key reasons for which you should always keep the trading chart cleans.
Helps you to analyze the raw data
If you install more than 3 indicators in your chart, you are not going to get a clear view of the raw price data. The raw price data tells a lot about the market. The naïve traders don’t think the candlestick patterns are enough to find good trades. The start using indicators like Bollinger band, Stochastic, RSI, parabolic SAR to get multiple confirmations. But increasing the number of a variable while doing the market analysis make things overly complicated. This is one of the key reasons for which the naïve traders fail to analyze the raw data. If you keep the trading charts clean and use 1 or two indicators, you can easily find good trades without having any headache.
Allows you to learn price action trading
If you start trading the market with a clean chart, you will slowly learn the importance of candlesticks patterns. Many Aussie Forex online community highlights the importance of price action trading system. It helps the traders to find the best signals at the key support or resistance zone. Once you start learning the details of the different formations of the Japanese candlestick patterns, it will be really easy to predict the price movement. Most importantly, you can execute the trades with tight stops. Stop pushing yourself to the edge as you might fall and hurt yourself. Instead of learning about the complicated candlestick pattern, use the most popular pattern to trade the demand and supply zone. And this will never be possible in a messy chart. So, keep your trading chart clean so that you can analyze the candlestick pattern with a high level of accuracy.
Gives you the bigger picture
When people focus on too many variables they often forget about the bigger picture. In Forex, if you forget about the bigger picture, chances are high you will lose most of the trades. Never trade the market based on short term goals as it increases the risk to a great extent. The smart traders are always trading the market with managed risk. They never take decisions based on shorter period data. By keeping the trading charts clean, you can zoom in and zoom out to get the overall picture of the market. Though it might be hard for the naïve traders, still it is the best efficient way to improve your trading skills. Stop messing things up and keep your charts clean.
Riding the major trend
Do you know the trend trading strategy is one of the most difficult tasks in the Forex market? The rookie traders don’t have enough skill to find the endpoint of the market retracement. They lose trades due to the major retracement and blames the market. But if you use a clean chart and the Fibonacci retracement tools, you can easily ride the major trend. However, using the Fibonacci requires an understanding of the key swings. You can easily learn about the major swings by using the demo account. But if you mess the trading chart with EAs, tools and other unnecessary elements, you will not get the precise data in the price chart. So, always use simple charts to improve your win rate.
