Posts Tagged Under: leading indicators

Price Action Vs. Trading Indicators – The Old Battle Settled(?)


The discussion about price action trading and whether it’s better than indicator trading is as old as trading itself. This article will debunk the five most commonly shared opinions on Price Action Vs. Trading Indicators and give traders a new perspective on the age-old debate.

#1 Price action is better than indicators

Price action traders claim that it is a much better trading method in general. But if you dig a little deeper, price action and indicators are not that different. Candlesticks or bar charts are tools to visualize price information on your charts. Indicators take the same price information and apply a formula to it. Indicators don’t add or take away anything from the price information you see in your candlesticks – they just process the information in a different way. This will become more apparent in the next points.

#2 Indicators are lagging – price action is leading

A trader who claims

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