Understanding Indicators
Combining Indicators
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.
SUTOK already combines these indicators and weighs their signals. The score and bias reflect the aggregate analysis.
Avoid using indicators that show the same thing: RSI + Stochastic + MFI all show momentum. Pick ONE from each category.
Key Takeaways
- Use 2-4 indicators from different categories
- Wait for confluence (multiple indicators agreeing)
- Avoid redundant indicators
- SUTOK combines indicators automatically