Indicator-Free Trading: Reddit Insights & Research Validation

A Reddit user shared a 6-year profitable track record of day trading options using only volume, price action, and order flow (avoiding MACD, RSI, VWAP), focusing on 3–4 familiar instruments and emphasizing patience [3]. Comments highlight diverse perspectives: Codeartha states indicators lag price; Buddhapunch notes moving averages are self-fulfilling due to algo usage; Successful-End7689 switched to macro signals (10Y, DXY, VIX) for profitability; Roopesh80 stresses strict rules even with price action [3].

Documented indicator-free methodologies include Naked Forex (high-probability techniques [1]) and order flow trading (e.g., Trader Dale [2]). Industry consensus (80% psychology/20% skill [4]) and 2024–25 analysis confirm both indicator-free and indicator-based approaches work if implemented well, with performance dependent on discipline/risk management over indicators. Backtesting quality significantly impacts perceived performance [5], and volume/price action strategies are gaining traction.

Agreement exists on indicators lagging price and the primacy of discipline/risk management. Contradictions: Some Reddit users mix minimal indicators (moving averages, RSI for risk) while others go fully indicator-free; research notes both approaches are valid. Implications: Traders should prioritize skill development over indicator choice; indicator-free strategies require mastery of volume/price action and strict rules.

Risks: Limited verified performance data for indicator-free strategies; overconfidence without structured rules. Opportunities: Growing educational resources (naked trading [1], order flow [2]); focusing on psychology/risk management [4] can improve outcomes regardless of indicator use.