What do you guys think on this?
Using too many trading indicators can lead to confusion and indecision, known as analysis paralysis. Simplifying your approach and focusing on a few key indicators or strategies can be more effective.
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i agree
it’s one example of analysis paralysis, yes
there are others, too (i’ve known pure price action traders, with no indicators at all, who suffer from analysis paralysis, too - but i’d agree that “too many indicators” is a common cause of it)
the important mistake to avoid, in this context, is the assumption that having additional indicators to “confirm” the entry signal will improve the overall results
it often doesn’t
it sometimes improves the win-rate but still makes the overall results worse, because it reduces the trading-frequency and can remove as many or more potential winners as losers
the concept to grasp is that if the subsequent price-movements after the entry are the opposite of what was suggested by indicators 1, 2 and 3, they’ll also probably be the opposite of what was suggested by indicators 4 and 5, so adding those wasn’t really beneficial at all
only exhaustive, detailed, methodical testing can accurately assess this, in any individual case
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Yes it does. An indicator is meant to do exactly that: to indicate what might be happening. They are never 100% perfect because they are mathematically-based to reflect certain types of market characteristics. The tendency, however, whenever they don’t work is to add yet another indicator to reinforce the signal, sometimes referred to as confluence.
But the more indicators that are used the more likely that one or more will give a conflicting answer - so it becomes impossible to decide which to follow: hence “paralysis”.
The same goes with PA, where, for example, drawing too many lines raises the question of which line(s) to select for targets and stoplosses.
If one uses indicators then one should be clear about what precisely each indicator is there for. Each indicator should preferably measure a different attribute, e.g. trend or range, trend strength, volatility, etc. There is little gain from duplicating attribute measurements. The fewer the clearer the better…
One needs to accept that any combination of indicators or PA analysis will always be wrong sometimes. But the answer to this is in risk/money management in order to limit the losses and optimise the gains - not to try and plug the hole with yet another indicator.
Good topic, @Nicholasbrownie 
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Analysis paralysis refers to a situation where an individual or group becomes overwhelmed with information or options, leading to indecision and an inability to take action. This concept can apply to various fields, including trading and investing.
When it comes to trading, using an excessive number of indicators or strategies can indeed contribute to analysis paralysis. This happens when traders attempt to consider every possible piece of information or incorporate numerous indicators, leading to conflicting signals or overwhelming complexity.
There are a few reasons why analysis paralysis can be detrimental to trading:
Overwhelming information: The more indicators or strategies a trader uses, the more information they need to process. This influx of data can create confusion and make it challenging to identify clear trading signals.
Conflicting signals: Different indicators or strategies may provide contradictory signals, leaving traders uncertain about which action to take. This uncertainty can lead to hesitation and missed opportunities.
Inefficient decision-making: When traders are overwhelmed with information, they may struggle to make timely decisions. Delayed decision-making can result in missed entry or exit points, potentially impacting profitability.
To overcome analysis paralysis in trading, it’s often recommended to simplify your approach. Here are a few strategies to consider:
Focus on key indicators: Instead of using a multitude of indicators, identify a few key indicators that align with your trading style or strategy. These indicators should provide meaningful insights and help you make informed decisions.
Develop a trading plan: Create a well-defined trading plan that outlines your objectives, risk tolerance, and preferred indicators or strategies. Having a plan in place helps provide structure and clarity, reducing the likelihood of being overwhelmed by excessive information.
Test and refine: Rather than constantly adding new indicators, focus on refining and improving your existing approach. Back-testing and forward-testing can help you assess the effectiveness of your indicators or strategies, allowing you to make data-driven adjustments.
Gain experience: Experience plays a vital role in developing trading skills. By actively trading and gaining real-world experience, you can become more confident in your decision-making process, making it easier to filter out noise and identify relevant information.
Remember, simplicity and focus are often key components of successful trading. By streamlining your approach and concentrating on a few reliable indicators or strategies, you can reduce analysis paralysis and increase your chances of making informed trading decisions.
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Analysis paralysis requires finding the right balance between gathering information and taking action. By implementing these strategies and developing a disciplined approach to decision-making, you can overcome analysis paralysis and enhance your trading effectiveness.
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Know what you are going to look for on a chart before you open it.
Use your strategy rules to identify in advance (from demo trading, back-testing and trial trades) what features you need to see in order to take a trade. Preferably these should be objective so there can be no doubt what they mean (it is more objective to identify that e.g. price is above a certain level, than to identify that there are not too many long wicks to the recent candles).
Ignore all other TA features.
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overusin everythin is harmful. jus like that