Post
Topic
Board Trading Discussion
Re: A single trading tool is not enough
by
TheUltraElite
on 30/04/2022, 09:57:29 UTC
To get the best out of any analysis confluence between multiple tools is best because it gives a clear picture of where to possibly set take profit and set a stop loss in case of reversals. For me i Iove support and resistance and so I combine trend lines, moving average, time frame and indicative candle stick making sure my chart is as neat as possible and any signal outside this i avoid it. This keeps my trading discipline in check.
I have always taken indicator with a grain of salt. Because I feel that you dont need indicators too much if you are trading long term, charts are enough to suffice and give you S/R levels. Instantaneous changes in the market will not affect you too much unless you are putting a large volume at stake at day trading - trust me, it is illogical to do that even if the projected profit is very high.

Beyond that Moving averages and RSI are enough to make a general prediction. Dont forget that these are predictions and not facts therefore they are always 50% correct.

Too many tools lead to analysis paralysis in my opinion, but if it works for you then you should keep it up.