The naked trader focuses more on market structure and price action to determine whether they want to be a buyer or seller in the market without the use of indicators. When you come across a chart you are looking to see if you can identify structure. If you cannot, it may be best to either go up or down a time frame until you can see structure clearly.

Price can move in an uptrend, downtrend, or sideways. With that, you are looking for price to either create higher highs and higher lows, indicating an uptrend. You are also looking to see if price is creating lower lows and lower highs, indicating a downtrend. When price is creating equal highs and lows, price is consolidating. After identifying one of the three, what’s next?

You are now looking for entries based on the structure of the market and if it is continuing to hold or break structure. Before getting into the break of structure, let’s talk about entries by following current and previous market structure. *Always look left to the left*

In this illustration below, you can see price creating higher highs and higher lows. When looking for entries, you would wait until price pulls back to an area of previous resistance. In this case, previous resistance is the last higher high before the higher low.