| In the field of FOREX trading there are two main | | | | timeframe and any currency. Even the most popular |
| approaches dominating the technical analysis method: | | | | pattern, the Double Top, occurs every few days and |
| indicators and chart analysis. The questions, which is | | | | the trader which trades it is passive in most of the |
| better and more efficient in generating trading signals, | | | | time. |
| is often asked. After reading this article, you would | | | | Fact #3: Indicators can be confirmed |
| have a better point of view over this subject. | | | | Chart patterns are stand-alone analysis tools which |
| Fact #1: Indicators are objective | | | | are hard to confirm using other tools. Once a trader |
| While chart patterns are obscure in their identication, | | | | has identified a pattern, there are very few tools |
| interpretation and trading, Indicators are very | | | | which help him increase the win rate and profitability. |
| objective in generating trading signals and are usually | | | | On the other hand, indicators can be confirmed by |
| understandable for beginner traders. Chart analysis | | | | many other technical tools and by this their signals |
| requires years of experience to be done properly and | | | | become more powerful and profitable. |
| with profitable expectancy. On the contrary, | | | | Fact #4: Indicators can be automated |
| indicators need not such experience and are easy to | | | | Prudent traders can create a trading system that |
| understand and trade. | | | | automatically trades their indicators. This cannot be |
| Fact #2: Indicators produce more signals | | | | done with Chart Patterns as they are hard to identify |
| Indicators gives signals very often and produce many | | | | and trade automatically. This allows the trader to |
| profits opportunities for traders, while patterns are | | | | save time and effort while a robot trades |
| relatively rare. Chart patterns occur every few days | | | | automatically, instead of waiting for days for illusive |
| or weeks while indicators gives signals in any | | | | chart patterns. |