Price action trading is almost everything. Price action trading is the only non-lagging indicator. Most traders love technical indicators and oscillators. I have seen many traders excited when they discover a new tool to drag on their charts, adding all sorts of colours, lines, and arrows all over the place. However, the absolute truth is that everyone is searching for a fictitious “holy grail indicator” that will remove the anxiety from making an educated trading decision.
An indicator or oscillator is a mathematical calculation based on a security’s price and/or volume. The result of this calculation is used to “predict” future prices. Conventional technical analysis indicators are moving averages, MACD, RSI, Bollinger Bands, etc. Most indicators are derived from prices on the chart, meaning that they are “unnecessary” and/or reflect past information that can be read on the charts.
As you probably know, your relationship with indicators may have developed into a love/hate relationship when nothing lived up to your expectations. And then this relationship probably escalated into a vicious hunt for the “perfect indicator” – expending a lot of wasted energy searching for the perfect indicator to provide you with high-probability entries without any effort.
Watch the video analysis below to learn more about price action and supply and demand imbalances.
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