Been trading for a while now and feel like I’m using too many indicators at once. RSI and MACD seem solid but wondering what combination actually works in practice.
What indicators do you actually rely on when making entry decisions?
Price action and volume beat any indicator combo. Most indicators just lag since they’re built on old price data. I only use two things: support/resistance levels and moving averages for trend direction. 20 and 50 EMA do the job. RSI’s good for spotting oversold/overbought spots but never trade it solo. MACD gives decent trend signals but watch out for fake crossovers when markets get choppy. Keep it simple. Too many indicators just mess with your head and give you conflicting signals.
I prefer using moving averages to show trend direction. Waiting for pullbacks to the 50 EMA is my entry strategy.
Fib retracements also come in handy for identifying potential reversal points, typically around the 38% or 61% levels.
Many indicators provide the same information, so I focus on a couple of reliable tools instead of cluttering my chart with too many options.
Three indicators max. I focus on price action first, then use one trend filter and one momentum oscillator. My setup includes horizontal support and resistance, 21 EMA for trend direction, and Williams %R instead of RSI. Williams %R gives quicker signals at -20 and -80. Many traders chase the ideal indicator combination. It does not exist. Markets change - what works in trends can fail in ranges. It is better to understand how each indicator behaves in different market conditions rather than overload with unnecessary tools.
ATR changed my whole trading game. Most people skip it, but it beats any oscillator for showing real volatility.
I pair ATR with basic support/resistance zones. ATR spikes above its 14-period average? Breakouts actually follow through. Below average? I skip breakout trades entirely.
For entries, I keep it dead simple - trend line breaks and candlestick patterns. ATR just tells me if there’s enough momentum to actually move.
I’ve tried everything over the years. Stochastic with MACD, multi-timeframe RSI, even dropped 200 bucks on custom indicators. Simple always won.
Most indicator combos measure the same thing - momentum or trend. You get three different ways to say “oversold” instead of actual new info.
ATR’s different. It shows how much the market moves, not just which direction.
Bollinger Bands and RSI work well together. When price hits the bands and RSI confirms, it’s often a good entry point.
Had the exact same issue when I started - charts looked like a Christmas tree with 6 indicators everywhere.
Now I just use RSI and a 200 SMA for trend direction. That’s it.
RSI’s perfect for timing entries at 30 or 70, but here’s the key - only trade RSI signals that match the main trend. Going against it burned me way too many times.
Tried MACD for months but it gave false signals constantly in sideways markets. The histogram looked good but kept putting me in bad trades.
Real breakthrough was learning support/resistance first, then using RSI to dial in my timing. Much cleaner than having multiple oscillators contradicting each other.
Start with just RSI and see how it works. You can always add more later.
Stochastic and 200 MA covers most setups for me.