Each indicator plays an important role when analyzing the market. In which, ADX will be used as an indicator to determine trend, RSI is an indicator to define momentum, and Bollinger Bands will be used to analyze price movements.

Position 1 (ADX combined with RSI): Before position 1, ADX showed a trending market (ADX increased strongly), RSI also confirmed the momentum increase (ie the trend is strengthening).

Position 2 (ADX combined with Bollinger Bands): ADX started, trend weakened. If we observe resistance at this stage, the trend will be harder to break than in the previous period. Price also failed to escape the lower band of the Bollinger Bands.

Position 3 (ADX incorporates Bollinger Bands, RSI): The price moves sideways, the ADX indicator shows that the indicator falls below level 30. Using the Bollinger Bands, combined with a reversal signal on the RSI, you will spot a price reversal zone.

Position 4 (ADX combines Bollinger Bands, RSI) is the same case in position 3, when the price goes sideways (ADX falls), you continue to use Bollinger Bands to identify areas of reversal and signals. reversed on RSI to confirm entry point.

Position 5 (ADX combined with Bollinger Bands, RSI) ADX is still maintained at a low level, the price still moves sideways. RSI appears a divergence signal, you find that the price is in the upper band of the Bollinger Bands, confirming the entry point of the sell order.

As you can see, combining indicators is not always too complicated if you know how to choose, combine the right tools, and use them for the right purpose. When you overlap a function by using too many indicators of the same type, you not only confuse yourself but also cause yourself to lack the necessary information to support accurate trading.

Also, more is not always better. If according to classification there are only 3 types of indoors, you should only use maximum indicator only. Except for some indicators that perform 2 or more trading functions (like Bollinger Bands), you can remove unnecessary indicators to make trading more streamlined.

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