No indicator is the best indicator
Let me explain that to you.
Every Indicator that we have is itself based on price and volume.
Rather than investing time on indicators, you should learn price action. I was also fond of indicators at the start of my journey but I slowly shifted to Price Action.
Because most of the indicators will tell you a bullish signal when 30–55% of the trend is exhausted and when you enter at that time your probability of winning becomes very low.
You can have a greater winning % by combining indicators but then you’ll lose a lot of opportunities in the market.
I’m not telling indicators are bad there are few indicators like Macd where the winning probability is 62-67% with proper money management but then you start relying on those which is not good for the long term.
So what is price action?
- Price Action is a trading technique or a strategy where a trader uses the movements of price and volume mainly to take entry and exits without relying on indicators.
Some examples and patterns of Price Action:
- Price Action is based upon the concept of support and resistance and before you jump into the patterns you should master candlesticks and support and resistance.
Even these don’t have a 100% Probability. As long as people believe in them they will work.
And Crypto markets are not a technical game it’s more of a psychological game, where learning the psychology of the traders and money management will make you a profitable trader in the long term.
Good-luck Trading!!!
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