I think that there are some people who are using indicators among those who are doing Forex. And maybe some of them are using dozens of indicators. If so, I would like you to make a fundamental review. The reason is that when you look at the chart, you don’t know what it is. Only use indicators that match your trading method. When you look at the chart, you get confused if it’s cluttered. In the end, you don’t even know how to formulate a strategy.
Indicators are limited according to the method
There are a large number of Forex indicators, each made for some purpose. However, there should be at most one or two indicators used in the Forex winning method. Also, the indicator is just an indicator, not a winning technique. Remember that it is training wheels.
What happens if you add too many indicators
The above chart is the result of putting about 10 indicators appropriately. I think there are many people who don’t get confused when they see this. What are you looking at? What do you want to do? The more you look at the chart, the less meaningful it becomes and the more confusing it becomes. This is not recommended because it will tip over.
Decide according to the method of competition
The indicator is just an auxiliary element. First of all, let’s decide what kind of trading method you want to do. Is it a short-term trade or a long-term trade? There are various things such as trend following or scalping. Let’s decide on one method first. After deciding, attach the necessary indicators. It is important for traders to make a clear strategy. If you trade uncertainly, you will not know where to take profit or where to cut off the loss.
As a tendency of people who attach a large number of indicators, there are many people who have thought about many methods to compete or who are always wondering which method to compete with. First of all, let’s limit the method of competition to one and do it thoroughly. Then add the necessary indicators for that method. For trend following, for example, Bollinger Bands and moving averages are sufficient.