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Which is the best indicator for technical analysis?!?! (Series 12: Bee_A_Trader)

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@beehivetrader
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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 30โ€“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 youโ€™ll lose a lot of opportunities in the market.

  • Iโ€™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 donโ€™t have a 100% Probability. As long as people believe in them they will work.

  • And Crypto markets are not a technical game itโ€™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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