Does price obey indicators?

No, guys. Price is self-sufficient. Sovereign. It rules everything. Indicators are only calculations and algorithms that try to predict the future behavior of the candles (price) based on its past behavior. Indicators are based on logic, but they don’t decide anything. It is a common mindset of beginners to think that the candles have to obey a certain indicator. We wish. 🙂 .

That’s one of the reasons why we shouldn’t get too exposed to the market, even if we are having a good trading day. Sooner or later price will flinch from the “logic” of the indicator and things won’t be as nice as before. Price is price.

Let’s say that indicators are machines without consciousness. On the other hand, price has consciousness because it is moved by human minds. That’s also why no one will ever have a 100% winning rate in binary options, forex, etc. What we look for is to be in profit despite the losses, those inevitable, and once and for all understand that price (candles) does not obey indicators.

In a nutshell: Indicators only indicate probabilities (based on past behavior of price). That’s why we should always have more than one indicator in a trading system and also a good money management plan.

 

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