Price Action Trading VS Trading Indicators - [The Ultimate Breakdown]by MD Tanjib Forex Trading Author
To be honest, both are actually goods but how things are going to be handy when a newbie comes. So, in this definitive blog, we will learn about the whole details of price action trading and trading indicators...
Price Action & Trading Indicator: Traders Thought
Price action traders believe that price action trading is the best profitable choice. They work on price action strategies and tools to get the best outcome from the markets.
As for the rival team, they believe that trading indicators or technical indicators are the only way to get out profits from the market. You have to learn a lot of indicators to find out the market loop otherwise, trading stress will become weak.
So, what is the best difference between price action trading and technical indicators? We will convey it out-
Facts About Price Action VS Trading Indicators
Both categories have similarities and differences. If we look very precisely, then we can see that both price action traders and indicator traders use price charts to identify the market trends and how the market will be going to be in the future. But the way they analyze is totally different from each other.
For instance, price action traders are analyzing the present market price and the past market price. So that, they can identify the future market price. But in other cases, indicator traders are analyzing past market prices to identify the future market price.
So, you can ask, "If the trading indicator is that simple, why are people forwarding to price action trading?" You can push harder with trading indicators but believe me, only giant traders' first choice is Price Action.
The main difference is - trading with indicators = need to learn a lot of indicators to find out where the market is going to be.
But as for price action trading, the trader has to do only analysis about price action tools to figure out the future market price.
So, now we will be breaking every key difference between price action trading and trading indicators-
- First of all, Price action is better than indicators
Most of the traders believe that price action is a much better way than any other. But the analysis shows that price action and indicators are not quite different. Indicators are trying to visualize your charts more effectively. It shows your price information about the market.
But with indicators, you can do a lot of things. As an alternative case, price action traders are doing almost the same. They analyze the market to figure where the market price will be going to be.
- Price is all way up than indicators
There's nothing that can be proved that indicators are positioned behind price action. If you analyze the market through you can locate that indicators show the past price information about the market. It ties the price with a formula and shows the ultimate result upon the formula. So, your indicators are indicating your past price action.
Though, if you are looking for a pure price action trader, he must be analyzing the same thing. Because price action traders are analyzing the past and present market price to predict the future.
- Which one is beginner-friendly?
The question is pretty difficult but we found most traders say that price action does so. Is it? In the case of trading, you can not neglect a single thing for another. Both are good, only you have to know how to use that. If you compare a hammer and a knife, both are good for their own purpose. You have to know the purpose to explain its necessity.
As for newbies, price action trading will be a risky decision. Because, you need proper guidance or experience, to jump into the sea of price action. The candlestick is not going to be easy at all. It's very difficult for a newbie to understand volatility and liquidity. Though price action looks very simple, that doesn't mean it's easy. Learning the basics will be very helpful.
Well, that's enough I think. But if you are still interested in the who story, please read the whole blog about price action trading vs trading indicators.
Till then, keep trading!
Created on Nov 24th 2021 01:51. Viewed 156 times.
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