One indicator is never enough. Context matters more than signals.
Many traders misuse technical indicators by treating them as buy or sell buttons. In reality, indicators are best understood as questions, not answers.
For example:
Momentum indicators such as RSI tell you how stretched a move is, not when it will reverse.
Trend indicators such as moving averages help you identify direction, but lag during fast transitions.
Volatility tools like Bollinger Bands describe expansion and contraction, not guaranteed breakouts.
The most effective approach is confluence:
Use trend to define bias.
Momentum to assess strength.
Volume or volatility to manage risk and timing.
If indicators disagree, stay patient. When they align, size responsibly.
Technical analysis works best when it is used to manage probability and risk, not to predict certainty. That mindset shift alone improves results more than adding new indicators ever will.
Simple tools, applied consistently, outperform complex setups used inconsistently.
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