Price action: trading without indicators
What you learn in 3 minutesThis lesson answers a common beginner question: can you read a chart without adding any indicators? Yes. You learn to read price action by looking at where price stopped before — the highs, the lows and the ranges between them. That matters in rand: on USD/ZAR, a move of 1,000 points (0.0100) on 0.10 lots is about R100, so knowing where the market turned last time helps you plan where you might act.
1,000 points on USD/ZAR — what it pays
| Step | Amount | Note |
|---|---|---|
| Instrument | USD/ZAR | the pair used in this course |
| Price area | around 18.4100 | the level shown on the chart |
| Range high | 18.4500 | the highest point of the recent range |
| Range low | 18.4100 | the lowest point of the recent range |
| Break level | 18.4500 | price closes above the range high |
| Position size | 0.10 lots | a standard mini lot size |
| Move after break | 1,000 points (0.0100) | from 18.4500 to 18.4600 |
| Value of move | R100 | 0.10 lots × 1,000 points × R1 per point per 0.10 lots on USD/ZAR |
Your broker may round the entry price, charge a spread and add commission or swap. Those costs vary between brokers, so the final rand amount can be slightly less than R100.
The mistake people make here
The common mistake is to wait for an indicator to confirm what the chart already shows. People add a moving average or an oscillator, and by the time it gives a signal the break has already happened. Instead, mark the range high and low on your chart, then watch for a close beyond one of them. The structure gives you the level; the indicator only repeats it later.Check yourself
If USD/ZAR breaks below a range low at 18.4100 and falls 500 points (0.0050) on 0.10 lots, what is the move worth in rand?
0.10 lots × 500 points × R1 per point per 0.10 lots = R50. The move is 500 points, so the value is R50 before any broker costs.
A range runs from 18.4200 to 18.4600. How many points wide is it?
18.4600 − 18.4200 = 0.0400, which is 400 points. On 0.10 lots that range is worth R400 if price travels from one edge to the other.