Combining Indicators
Lesson 12 of 126 min5 exercises
Learn · 1/2
Less is More
Using too many indicators creates "analysis paralysis." The key is selecting 2-4 indicators that provide different information and waiting for them to align.
A Balanced Indicator Set
Recommended Combination:
1. Trend: Moving Averages (SMA/EMA)
2. Momentum: RSI or MACD
3. Volatility: ATR or Bollinger Bands
4. Volume: OBV or MFI
Wait for 3+ indicators to agree before acting.
1. Trend: Moving Averages (SMA/EMA)
2. Momentum: RSI or MACD
3. Volatility: ATR or Bollinger Bands
4. Volume: OBV or MFI
Wait for 3+ indicators to agree before acting.
Tip
SUTOK already combines these indicators and weighs their signals. The score and bias reflect the aggregate analysis.
Watch out
Avoid using indicators that show the same thing: RSI + Stochastic + MFI all show momentum. Pick ONE from each category.
Learn · 2/2
Key takeaways
- Use 2-4 indicators from different categories
- Wait for confluence (multiple indicators agreeing)
- Avoid redundant indicators
- SUTOK combines indicators automatically
Next: 5 quick exercises. Miss one and it comes back at the end.