Indicator vs Price Action Trading: Signal Framework Trade-Offs
Why this page matters
This page is built as an operational reference. Use it before execution to quantify assumptions, document constraints, and reduce avoidable errors in live conditions.
Pre-execution checklist
Risk per trade is fixed and documented before entry.
Invalidation level is set before target selection.
Execution cost assumptions include spread, swap, and slippage where relevant.
A no-trade condition is explicitly defined.
Post-trade review fields are ready in the journal.
How to use this framework
Define the exact decision you need before opening a position or changing system parameters.
Input conservative assumptions first, then run a stress case with worse spread, latency, or volatility values.
Record outputs in your trade journal so the same process is repeatable across sessions and symbols.
Use the output as a pre-trade gate: if metrics violate your rules, skip execution instead of overriding discipline.
Common mistakes to avoid
Treating model output as certainty instead of an estimate under changing market microstructure.
Ignoring broker-specific conditions such as minimum lot, margin schedule, or swap adjustment windows.
Using isolated signals without confirming structure, liquidity window, and invalidation level.