Naked Forex Book Summary: Core Concepts Explained
Naked Forex: High-Probability Techniques for Trading Without Indicators by Alex Nekritin and Walter Peters is a groundbreaking book that challenges the traditional indicator-heavy approach to trading. Instead, it teaches traders how to read and react to pure price action.
In this summary, we’ll break down the most important concepts from the book—so you can begin understanding and applying Naked Forex trading without relying on lagging tools.
What Is Naked Forex?
Naked Forex is a trading method that strips the chart of indicators and relies purely on:
- Price action
- Support and resistance
- Candlestick patterns
- Market psychology
By removing technical clutter, traders learn to focus on what price is actually doing, not what an indicator says about it.
Why Trade Without Indicators?
The authors argue that indicators:
- Lag behind price
- Can conflict with each other
- Distract traders from true market behavior
Naked Forex eliminates this noise. It trains traders to rely on clear structure, clean charts, and discipline—leading to faster decisions and more consistent trades.
Key Strategies in Naked Forex
1. Kangaroo Tail
A single-candle reversal pattern with a long tail. It signals a potential price reversal at key support or resistance levels.
2. Big Shadow
A powerful engulfing candle that suggests a strong shift in market sentiment. Used for reversals or trend continuation signals.
3. DBHLC / DBLHC
Double Bar High Lower Close and Double Bar Low Higher Close patterns are used to catch quick reversals after failed price pushes.
4. Breakout Trading
Traders look for clean breaks of support or resistance zones, entering trades without confirmation indicators.
The Importance of Location
A major concept from the book is that location matters more than the pattern itself. A great-looking signal means nothing if it forms in the middle of a range.
Patterns should form at:
- Support and resistance zones
- Round number levels
- Swing highs or lows
- Supply/demand areas
Without proper context, even strong-looking patterns can fail.
Risk Management & Psychology
The book also emphasizes the mental side of trading. Key takeaways include:
- Stick to your plan: Avoid emotional decisions based on fear or greed.
- Accept losses: They’re part of the game.
- Be consistent: One strategy, one timeframe, tested thoroughly.
- Use tight risk control: Never risk more than a small percentage of your capital per trade.
Naked Forex demands discipline—you must learn to trust your system and manage your emotions.
Timeframes That Work Best
The authors recommend trading on higher timeframes like:
- H4 (4-hour)
- Daily
These offer cleaner setups and reduce the noise found in lower timeframes. Traders can spot clearer patterns and stay more patient.
Tools Needed for Naked Forex
- Clean candlestick charts (no indicators)
- Strong understanding of price action
- Backtesting tools or demo accounts
- A journal for tracking performance
Popular platforms: TradingView, MT4, or cTrader
Conclusion
Naked Forex isn’t just a book—it’s a mindset shift. It challenges traders to remove the noise, trust their eyes, and focus on price alone. With well-defined strategies like the Kangaroo Tail and Big Shadow, and a strong emphasis on psychology, this book has become a must-read for traders seeking simplicity and consistency.
If you’re tired of confusing indicator setups and are ready for a clean, disciplined approach to trading—Naked Forex may be the answer.
FAQs
Q1: Who is Naked Forex best suited for?
Traders who want simplicity, clarity, and a strong focus on price behavior instead of indicators.
Q2: Is Naked Forex suitable for beginners?
Yes. It helps beginners develop core skills like reading price action, managing risk, and building discipline.
Q3: Are the strategies in the book backtested?
Yes, the authors emphasize testing every strategy thoroughly before trading live.
Q4: Does Naked Forex work on all timeframes?
It can, but the book recommends H4 and Daily charts for better clarity and consistency.
Q5: Can I trade Naked Forex on any platform?
Yes. As long as the platform shows candlestick charts, it will work—no special indicators required.
