Naked Forex: High-Probability Techniques for Trading without Indicators

by Alex Nekritin and Walter Peters, PhD

Quick Summary

This Wiley Trading book advocates stripping away all technical indicators and trading forex markets using only "naked" price action on clean charts. The authors present specific price-action setups (big shadows, kangaroo tails, big belts, trendy kangaroos, and others), a clear methodology for identifying support and resistance zones, and a disciplined approach to trade management using last-kiss entries, stop placement, and profit targets based on market structure rather than arbitrary levels.

Detailed Summary

"Naked Forex" by Alex Nekritin and Walter Peters (PhD) presents a minimalist approach to forex trading that removes all technical indicators from charts, relying instead on pure price action and market structure. The core argument is that indicators are derivative of price and therefore always lag, while price itself is the most immediate and actionable piece of information available to traders.

The book begins by making the case against indicator-based trading. The authors argue that most retail forex traders lose money in part because they clutter their charts with overlapping, contradictory indicators that create analysis paralysis and delayed entries. By stripping charts down to candlestick bars and support/resistance zones, traders can respond more quickly to what the market is actually doing.

The methodology centers on identifying zones -- areas of support and resistance where price has previously reversed. Unlike precise price levels, zones are areas defined by clusters of prior reversal points. The authors teach readers to identify these zones on multiple timeframes and to anticipate that price will react when it returns to them.

The core trading setups are based on specific candlestick patterns that occur at these zones. The "big shadow" is a large engulfing pattern that signals institutional reversal activity at a key zone. The "kangaroo tail" (essentially a pin bar or hammer) shows rejection of a price level through its long shadow. "Big belts" are strong marubozu candles that indicate decisive institutional commitment. "Trendy kangaroos" are kangaroo tails that form in the direction of the prevailing trend at pullback support levels.

The "last kiss" entry technique provides a specific methodology for entering trades: rather than entering immediately on a setup signal, traders wait for price to return to "kiss" the breakout level one more time before entering, improving the risk-reward ratio.

Trade management is rule-based: stops are placed beyond the market structure that defines the trade (beyond the zone, beyond the tail of the setup candle), and profit targets are set at the next significant zone rather than at arbitrary pip distances.

The book includes free trading software and a video tutorial, along with extensive chart examples from forex pairs across multiple timeframes.