2 Type Of Charts “Clean” Charts VS “Messy” Charts – ICoQuet
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2 Type of Charts “Clean” charts VS “Messy” Charts

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“Clean” charts VS “Messy” Charts

A forex chart graphically depicts the historical behavior, across varying time frames, of the relative price movement between two currency pairs.

Next, to demonstrate the stark contrast between a pure Price Action. chart and one with some of the most popular forex indicators on it, I have shown two charts in the examples below. The chart on the top has no indicators on its “clean” chart, there’s nothing but the raw Price Action. of the market on that chart. The bottom chart has MACD, Stochastics, ADX and Bollinger Bands on it “messy” chart; four of the most widely used indicators AKA “secondary” analysis tools as they are sometimes called:

The image example below shows a clean price chart, with no mess, and no indicators, just pure price bars: “Clean” Chart

The image example below shows a messy chart, with lots of clutter, indicators, and mess:

messy

It’s worth pointing out how in the indicator-laden chart you actually have to give up some room on the chart to have the indicators at the bottom, this forces you to make the P.A. part of the chart smaller, and it also draws your attention away from the natural Price Action. and onto the indicators. So, not only do you have less screen area to view the Price Action, but your focus is not totally on the price action of the market like it should be.

If you look at both of those charts and think about which one is easier to analyze and trade from, the answer should be pretty clear. All of the indicators on the chart below, and indeed almost all indicators, are derived from the underlying Price Action. In other words, all traders do when they add indicators to their charts is produce more variables for themselves; they aren’t gaining any insight or predictive clues that aren’t already provided by the market’s raw price action.

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