1. Are you a beginner or an experienced trader?

The beginners may find indicators more useful, as it helps them filter out trading signals.

More experienced traders may find that they do not need too many indicators, because they have forged their skills in price action analysis as well as knowing which indicator is right for their strategy and only. No newspaper.

2. Are you a trader to trade on a short or long-term frame?

If you are a scalper and trade on an M5 chart, having multiple indicators on the chart becomes more difficult, as the frequency of the signals you receive is too dense.

A trader who uses the daily chart will have more time to reflect on the signals, so applying multiple indicators can aid in analyzing the chart in detail.

3. What is your hobby?

Think of what you feel most comfortable with - a clean chart with only candles or maybe 1-2 indicators on it; Or a chart with many indicators appearing?

If you feel overwhelmed by a large number of indicators, then you may find that finding a strategy around price action is more suitable for you.

The most important lesson

No matter how many indicators you want to use - you should avoid applying too many indicators that basically only show the same information.

You need to know about 4 main groups of indicators, which are:
  • Trend indicators - Indicators that help you identify trends, such as moving averages, MA, and Parabolic SAR.
  • Momentum Indicators - Oscillation indicators help you identify overbought and oversold market conditions. For example, RSI, Stochastic, and CCI.
  • Volume indicators - Indicators that show the volume behind a particular price movement. For FX spot trading.
  • Volatility Indicators - Indicators that assist traders in understanding price ranges. Examples include Bollinger Bands and ATR.