001PT (Page 1 of 9)
What is Price Action Trading?

Price action trading is trading without indicators. It is a technical trading style where traders analyze the charts and make judgments using price movements

The tools that price action traders usually use are trendlines, support and resistance levels, candlestick patterns (Doji, engulfing, etc), and chart patterns (1-2-3, Heads and Shoulders, etc).

002PT. (Page 2 of 9)
Advantages of Price Action Trading
Price action trading allows every trader to draw their own unique conclusions from their analysis. It gives you more control over your trading decisions, as you get to make judgments based on your interpretation of the price action.

Apart from its subjective interpretation, the trader’s way of using them in charts is also subjective.

For instance, one trader could draw their support line across the tips of the lowest hanging wicks of the candlesticks. While the other one could draw theirs across the bodies instead.

There is no right or wrong, which makes it possible for price action trading to fit into just about any kind of trading strategy.

003PT (Page 3 of 9)

Disadvantages of Price Action Trading

Price action analysis can hardly be automated. The trader usually has to draw out everything they need on their chart, making price action analysis time-consuming.

Every trader could interpret signals differently. For instance, a candle breaking out of a support level could either be perceived as a breakout or a false breakout. This could be bad news for novice traders, who are yet to fully grasp what interpretations to hold on to when using price action trading.

Data Source : Internet

SHARIAH COMPLIANT Group

All lessons already discussed in our group in March 22

Now we are Re - posting for revision purposes

004PT (Page 4 of 9)
What is Indicator-Based Trading?

Technical analysis vs price action
OrderBook indicator is used on the chart
Indicator-based trading is a technical analysis trading style that relies on indicators to analyze a currency pair and generate trade signals.

Data Source : Internet
SHARIAH COMPLIANT Group

005PT
(Page 5 of 9)
Advantages of Indicator-Based Trading

The signals of indicators are usually unambiguous. They mean the same thing to most traders. This is because indicators usually use pre-defined colors, line cross-overs, and all sorts of graphics to mean definite things.
Let’s take a look at a scenario where a trader is using 20 and 50-period Moving Average indicators on a chart. The crossing of the 20 MA above the 50 MA is always a buy signal, irrespective of the trader’s trading style. But if the 20 MA crosses below the 50 MA, it is regarded as a clear sell signal.
Indicators are less prone to human error because they are based on pure programming and calculation. Every trader gets the same output when they use the indicator settings.
Trading with indicators is very easy to learn for novice traders. All they need to do is plug the indicator into their MT4 (for those using the trading platform) and the tools will automatically generate signals for them.

Data source: Internet
Shari'ah compliant group

006PT (Page 6 of 9)
Disadvantages of Indicator-Based Trading

No one knows what’s going on behind the attractive outward appearance of many indicators. As a result, there’s no way to tell if the indicators would give good or bad signals without rigorously testing them out.
Many indicators repaint their signals, deceiving unknowing traders about their accuracy.
Indicators can either lead or lag. Not knowing which one yours is doing could lead novice traders to making a lot of mistakes when trading.

Data source: Internet
Shari'ah compliant group

ये वीडियो एक बार जरूर देखें, और इसे अपने मस्जिद के इमाम साहब और मस्जिद के ज़िम्मेदारां के पास भेजे, या उनसे मुलाकात करके ये वीडियो दिखाये या उन्हे खुद समझाए, इस वक़्त मस्जिद मे Ac लगाने से ज्यादा जरूरत कैमरा लगाने की है, जिससे हमारे बेकसूर मुसलमान भाई झूठे केस मे ना फसाये जा सकें...
ज्यादा से ज्यादा अपने Emam aur Zimmedar को Convince करने की कोसिस करें..

007PT (Page 7 of 9)
Differences Between Price Action and Indicator-Based Trading

Indicator-based trading is easier and faster to learn for novice forex traders than price action trading. Note that “easier” and “faster” don’t necessarily translate to “more profitable.”

Indicators are automatically drawn on the chart. Price action patterns are drawn by the trader.

Because indicators are automatically drawn on the chart, their signals are often objective. They have their own meanings that are not subject to the interpretations of a trader.

And because price action patterns are drawn by the trader, the signals that develop depend on the trader’s interpretation of what they have drawn.

Indicators are often calculated based on specific prices, such as the opening and closing prices of certain periods. Moving averages, for instance, make use of the opening and closing prices of a set number period to plot its lines.

Although price action tools sometimes do this too, they often rely more on obvious visual patterns. For example, a pair is in an uptrend not because a calculation was done based on the previous candlesticks, but because the candlesticks simply look like they’re going up.

Data source: Internet
Shari'ah compliant group

TRADING L1

Volume & its relationship with price, is one of the key consideration an investor should bear in mind when deciding when to buy a stock.

For a price increase to be truly meaningful, it is Vital that the stock is being bought in heavy volume, because this is an important indicator of institutional buying.

If the drop is coming in large volume it could mean your stock pick is in danger of sinking as institutions throw their shares overboard.

One can be more comfortable holding onto a stock if its price is falling in light volume.

008PT
Which is Better? Indicators or Price Action?

The better technical trading approach between price action and indicator-based trading depends on your preferences as a trader. Each approach can only be as good as the trader using it.

An indicator-based trader might make consistently profitable trades based on just one indicator, while another one piles up to 5 indicators on their chart and still racks up consistent losses. Similarly, two price action traders may interpret the same price action differently and each could end up at the opposite end in terms of profit and loss.

Data source: Internet
Shari'ah compliant group

Article No. 001PT to 008PT read step by step

Last two 009PT & 0010PT will be share soon

Inshaallah

Alhamdulillah ☺️

🚫 STRICTLY PROHIBITED🚫
Paid promotions
Paid classes
Paid calls
Paid services

We are not promoting any app or website or stocks also 👍

Jazakallahu khair

💥 Correction in indices from 52 week highs :

Reality ~ 27.2%
IT ~ 22.1%
Financial ~ 19.6%
Media ~ 19%
Consumer Durables ~ 17.9%
Bank ~ 17.3%
Pharma ~ 14.2%
Auto ~ 13.4%
FMCG ~ 11.3%
Metals ~ 11.1%
Energy ~ 3.3%

🚫 STRICTLY PROHIBITED🚫
Paid promotions
Paid classes
Paid calls
Paid services

We are not promoting any app or website or stocks also 👍

Jazakallahu khair

Why should we join this group?

Share market me halal tareeke se kaam karne liye group join karen..

Our group Benefits

✅ Only Shariah compliance trades.

✅A platform for newcomers to learn and earn

✅Trade ideas with Proper buy & exit

✅Technical/Fundamental analysis support

✅Support during market hours

✅ Friendly environment

✅ Learning sessions for beginners

These all are like a premium service 😊

Basically we are trying to make our people financially strong & independent traders👍

Telegram: https://t.me/ShariahShare

For Backup Join FB Group :-
https://www.facebook.com/groups/222715995991078/?ref=share

Jazakallahu khair

⚠️ WARNING⚠️
Dear Members

Pls correct your name Or
Share
Name
Proffesion
Location.

Whose name is not correct, his doubts, questions will be ignored.

We can remove the suspicious members at any time without information.