Total newb question, but I’ve been told that when using multiple indicators, that I should combine ones that look at the same data for the same purpose. Ex. Combining RSI and Stochastics, since both are oscillators looking at overbought/oversold levels. But combining things like RSI and MACD is ok due to their natures.
Is this true? Does it really matter? I figured it wouldn’t matter depending on the trading style and knowing what the indicators do (intended purpose) but I may not really get it. If anyone could help me on this one, it’d be great!
Use indicators ONLY when you know how they are being calculated and why they are showing you what they are showing.
More is not always better
It is best to combine analithical approaches (indicators included) that use DIFFERENT data. For example only, Fibonacci and support/resistance levels with RSI
MACD and RSI are not much different. Take my advice, spare youself a lot of pain and forget about indicators. It is you against me and the rest of the world, what advantage you think you are having with indicators if all traders are looking at the same? Don’t be lazy, make your own analisys, if you think a math formula will bring you some good setups you are just as much ahead as the 95% out there.
Fully agree with this! Too many indicators on your chart will get very confusing, and just make it very hard to see the chart itself, and the price action going on.
Everything you need to know is right there on the chart itself.