Why do many traders not use the indicators?
You must have heard the name of indicators in Forex. Indicators are different trading tools which give the traders a clear clue about the market movement. Traders use these indicators and interpret the market. With the help of indicators, they can know more accurate information of the market like when the market experienced a major drop down of the price level, when the currency pair started to raise its price and if there is any important change in the market. Though indicators are used in the chart to help the traders, there are a group of traders who do not like to use indicators in Forex. They think of the indicators as some sort of disadvantages tool which will lack them of the market experience. But why do they think so? This is what we are going to explore in our article.
Indicators: Helping hand or hindering your advancement?
If you can use the indicators to interpret the market signals, it is an advantage for you. But not many traders can do that. Most of the time, the expert Aussie traders think they can use their strategy more precisely in the market if they do not think about the indicator. It will only slow their trading. For this very reason, they use the knowledge of key support and resistance level and place their trade based on the raw price movement. Some of the advanced traders often use the price action trading strategy to find the high-quality trade. The price action trading system is based on the formation of the Japanese candlestick pattern and the expert traders use it to find whether the price of a certain asset will reverse or continue its movement in direction of the trend. This is pretty much similar to the indicators but with the accuracy is extremely high.
Why are indicators preferred by experts?
There are some good reasons why traders do not like indicators. It has nothing to do with the merit or mastery of the traders. First reason traders do not like to incorporate indicators because most indicators only appear on their charts when the movement is over in their [url=https://www.home.saxo/en-au/platforms]trading platform[/url][tag]insert-text-here[/tag]. When you are trading in a live market with the live signal, every second count. This leaves a big question for the use of indicators if they are not shown in the live data with the live market. If we give you one example, it will be helpful for you to understand. If the market has changed a major volatility and there is an indicator in the chart showing that, you will know that that volatility has been over. But you need to know what the present market trend is. You are trading live on the market and your every trade is placed live. Information which has been passed on the market are of no value to you if you are presented with the trend which has been over in the market.
Another reason traders do not use indicators is that it makes their chart messy. You want a clean workplace for your trading and you do not want to mess your working station. If you can make money without using indicators, it is very good. However, some traders often use indicators but they consider it as their helping tools only. Unlike the new traders they don’t mess up their trading charts with tons of indicators rather they use only one or two indicators to filter the false trading signals.
Summary: Indicators are not so much helpful to the professional traders. The expert in this industry can easily interpret the price movement by seeing the formation of the candlestick. So try to trade the key support and resistance level without the help of any indicators. Lastly, learn the reliable candlestick pattern to improve your winning edge.
