What do you prefer between pure price action and indicators?
What do you prefer between pure price action and indicators?
When it comes to trading, there are two groups of traders: those who like to use indicators and those who prefer price action only.
Traders who use indicators say they provide accurate entry and exit signals but may sometimes lag. Price action traders argue that indicators rely on price data and thus are unnecessary.
What do you prefer: price action only or indicators?
Relying on price action will make you crazy on crypto trading since the volatility on crypto tarding is very which fake pump and dump is always common in daily basis so you have a high chance being trapped if you are relying on price action alone.
You can refer the Bitcoin chart on daily time frame, you can notice that it frequently pump and dump with the same level which means if the price grow 1000USDT today then tomorrow will be less 1000USDT to erase previous gain.
Those who ride the pump and fomo buy suffer huge loss if they can’t exit before the price gain was deleted on the next day.
In the end, this is a matter of personal trader preference, experience level and market interpretation between PA only and lagging/leading indicators. Both are popular with traders so many people use a combination of both, as price action analysis can be complemented by indicators. To develop an effective trading strategy, we must realize that both methods have their own pros & cons.