What do you prefer between pure price action and indicators?

Luizwalter Crypt

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

It all depends on the professional level of the trader. To me with my little experience, indicators are formed from the resultant effects of price action so needless of one capitalizing on indicators when he/she could learn what forms the indicators.
According to Mark Douglas "every moment in the market is unique" so judging the markets behavior with past data would not yield excellent results compered to "trading in the now moments"(Mark Douglas) with the current price action. Although both works but I prefer trading with price action because you could trade any financial market with it. Though this doesn't guarantee 100% wins cause that's the nature of the market.

mirakal

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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.

I'd never think there is an accurate tool for trading but the price action that serves as a buy/sell indicator, it could be somewhat effective. But if we still have enough time to explore the market situation, we can use some important trading tools. Besides, this is not about making perfections because this gives us no assurance due to the volatility of the market but at least, we can minimize losses which is one thing we benefit from it.

Quote

What do you prefer: price action only or indicators?

Just choose the strategy and tool, or any way of analyzing the market condition that we believe works for us. Our actions come from what we observe in the market price movement which I suggest spending more time with this than on other trading tools.

GreatArkansas

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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What do you prefer: price action only or indicators?

There are some indicators that uses price action or they are based on them, so for me, a good trader can use both, not only price action and not only by indicators, combination is also good so you can identify if the next action you expecting is legit or just a trap that could lead you to lose.

johnsaributua

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For those who like detailing like professional traders, this makes it easy to move every candle, whether there is a break or a continuation, the sophisticated trading tools on an exchange make it easy to get information and make decisions at any time even if it is only a few seconds difference, and that's normal. Yes, I myself do not like to torture myself by predicting with confidence more accurately, even though there is a notification of every price break. I prefer a relaxed trading style with price action even though I'm not a scalper but with that simple way I can still profit, even though both of them are still by choosing a trend but it's more comfortable to enter at a potential that might be 5-35% or more.

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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.

Actually I don't see much of a difference here. Price action people still need to say an entry and exit, and guess what, they're going to be doing some kind of TA anyway to determine what that is at least in a small part.

You know what a 'pure' price action trader is? Normies who FOMO (buy when price is bullish) and who panic sell (sell when market crashing). I thought I was smart in 2017 and 2018 buying 50% dips, buying even more at 80% dips, 90% dips. Lol at myself.

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Quote from: BlackBoss_ on June 16, 2024, 08:54:00 PM

Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

So is price action purely independent itself and is not related to any indicator at all?

If you only apply price action but never zoom out to see the wide picture and use basic indicators to have overview of the market, you will fail with price action. Because if you only dig in a small time frame, apply price action, you will possibly miss a bigger picture and this is terrible beginning of failure in trading.

Trading with price action, fundamental or technical strategies, people always need to zoom out before apply these strategies. They can not sit down in their small house, and ignore other things are happening in society, in their country. Bad decisions will be made if they trade with this style.

I guess so, judging in his posts there. I think price action is like trading based only in our emotions or instincts but trading with indicators is like an educated way to trade, therefore you are right when you say that we will likely fail if we will only rely on price action.

It is only justifiable to do if we are rushing but using indicators can require a lot of time, as we will analyse things first. I see that you also have another definition of zooming out and that is to do other things outside but I think those who do trading with price action only are like that already. They do also have a life. Only those who don't have it, are people who have a severe addiction.

BlackBoss_

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

So is price action purely independent itself and is not related to any indicator at all?

If you only apply price action but never zoom out to see the wide picture and use basic indicators to have overview of the market, you will fail with price action. Because if you only dig in a small time frame, apply price action, you will possibly miss a bigger picture and this is terrible beginning of failure in trading.

Trading with price action, fundamental or technical strategies, people always need to zoom out before apply these strategies. They can not sit down in their small house, and ignore other things are happening in society, in their country. Bad decisions will be made if they trade with this style.

el kaka22

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I would say both has a place in the crypto world, you can't really make a decision based on whatever you want, I believe that if we were to say that things will change, then we can't have one option. It is something that takes a while and I think it would not be all that complicated when you think about it. Because there is not a single thing in the financial world where it's just one true answer, and you can't just say pure action is better or indicators are better, you need to use them both.

Most people do that and it would be smarter way of making an investment. Trading is hard, you are not going to get an easy way out, and I believe that the best way to go with this would be just realizing that these things take time to be a master of, so we should be much more careful with it.

X-ray

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probably depends on the timeframe of your trading if its long term you probably better off with indicators if its short term price action probably fare better for you because you know what most of the long term trader with 5m candles are just doing price action, so to play the game with the same approach you should also use price action, remember that you are trying to profit off the price swing and probably your trade is leveraged, nothing better than just following the flow and cash out when necessary, I think most of short term trader or daily trader in a nutshell relies heavily in price action.

if you like me though who try to hold long term, indicator is the way to go, comparing the all time low with current price, whether its a good entry or not is essential to find opportunity buying at the lowest point and profit whenever the price goes up again. in this case I think price action become rather meaningless.

to be fair probably as spoken by many people before, these two could never become accurate, what matter most is just seeing all these price actions and indicator data combined with the trend and external factor such as news, just imagine if suddenly bad news appear, it will completely render these two approach of trading useless.

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

Look these all depends upon the individual that uses the technique. Sometimes indicators may help you and sometime the price action method might help you.

In trading it's all about the estimations. You choose the best method that suit you. Some will prefer the first because it has given them good profits and vice versa. So in the end what matters is profitability.

boyptc

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IMHO, price action is ideal for holders. Not to complicate things at all, so when there is a price action which is negative or a dump, then that is a sign to buy.

Whilst for indicators, there are too many of them but as said, what you see that works best. Aspiring ones think that being good in analysis is always going to make them win at all times.

bettercrypto

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

Remember that neither of those two is accurate, although they are equally helpful to all traders who have an understanding of trading. That's why the unpredictable will not disappear from the market. I think you missed this point. That depends on the analysis done by an individual trader.

We will not have the same technical analysis done because we will think differently when reading the chart. We may have the same tools that we use, but we are different in how we use them when we perform technical or fundamental analysis.

stomachgrowls

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

Depends!

If you do saw that price actions is making you money then you should stick into it, likewise when you are using indicators but in overall it wont really be something that much of a concern
as long you are really that indeed making some good trades then it wont be that much of a concern or something that you would be minding considering that you are making good trades
then it wont really be that an issue. Make use of those ways or methods on which you do know on where you are really that effective. Although it wont really be that much effective
all the time because of market shifts or changes but one things that matter most is that you do able to make money and profits despite of those conditions.

So you are the ones who would really be able to find out on which one you would really be seeing it to be effective. You cant really just that make yourself
trying to switch up on things on which you dont even know.

Faisal2202

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

Indicators do not only rely on price data as they rely on past price data while the price action doesn't consider the past behavior of the pattern of the trading pair. I think we should go with indicators as along with TA (Indicator's usage) when we use fundamental analysis we get more accurate entry points and exit points. One thing we all should keep in our mind is that trading with any of both does not mean we are going to make a profit for sure.

As trading via TA or FA or price action doesn't bring profit to the table always. But they increase the chances and decrease the chances of losing it all in a blind trade. I also think these two can be used interchangeably as they are almost dependent on each other. I mean in price action we see the behavior of the chart and using indicators we can judge that behavior more accurately and can confirm what outcome we are going to get.

electronicash

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indicators. It always works unless the unexpected happens. there were times that you may really not expect things to happen like when it hits the peak, the prices start to dive and then suddenly the price goes back up again but macd and rsi don't follow the price pump. this is where the convergence and divergence theory has to work.

wars and whatever happens in geopolitics are often the things that affect the prices or even just the fomc.

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

If you are not a whale, you'll depend on your luck. I use basic rules, buy low, sell high and I prefer long-term holding. For example, I bought Bitcoins at 20K and sold at 60K. Now I don't own any coin, I'll wait for the price to go down, I feel like it has to go down. If I am wrong and the price isn't going to fall, then I'll buy at 70K, 80K or whatever it is to catch the bull run and hold it till the bubble bursts.
I find the monthly time frame very interesting for predicting the future. Daily time frame often distracts you from predicting the future.

Wapfika

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

What do you prefer: price action only or indicators?

Short term wise, Price action is the most effective at least for me since you can guarantee the direction will just follow the heard. I always set take profit and stop loss when trading this way while occasionally adjusting my stop loss whenever the price keeps going the positive side of my trade.

Indicator is very useful for long term trade since it can give you a general outlook for the potential outcome of the price through the price history since crypto trading just repeat itself every cycle.

Both indicators and price action has their own merit so there’s really no better in general since they different use.

Assface16678

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Why not both? I mean, there are many traders that use a lot of different indicators or different ways of coming up with a technical analysis or their next move in the market, so why not use both indicators and price action? I think it will be more efficient, and the trader will have different insight into the market and a bigger chance of profiting from trading. Well, it can't be helped that some traders will only focus on one or a few indicators or methods in order to predict the market, and that's fine because that's how they are familiar and that's how they can earn in trading. So yeah, both methods are good to be used, and it will be even greater if a trader can implement them both or can use different indicators in coming up with technical analysis. Thats how experienced and expert traders do it in order to gain profit from the market.

TheUltraElite

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So anyway, I applied as a merit source :)

Indicators are only a 50-50 prediction as to what side the market might move towards, they are seldom accurate and should be used cautiously.

To get a proper analysis you have to use your Fundamental along with Technical and past price charts with a tinge of luck.
Still then there is a small chance of wrong prediction because after all this is not an exact science.

However relying only of price will be difficult to manage. You have to see the trend and then decide.

Barikui1

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Quote from: laubeaud on June 14, 2024, 04:31:10 AM

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?

Yes, it's actually true that trading with only indicators can be very misleading and it might leads to significant losses if your risk management strategy is not being utilized properly, because indicators only reveal the past data of the market, and it potential, but it wouldn't show you a clear path of were the market is going next.

While as for price actions trading system, it's more informative and cannot be misleading as the technical indicators, and each of the candle sticks has a meaning that someone that is actually good in price action trading will know what's the meaning and it sentiment.

But in all this, I believe that regardless of the system you are using to trade, wether price action trading or trading with technical indicators, if you are real good at it, and you knows what you are doing, you will definitely do better, because your knows how to use them to your own advantage.

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