Indicators come in two families.
EarlyLeading (oscillators)RSI, Stochastic, CCI. Early signals, more false alarms. Best in ranges.
LateLagging (trend)Moving averages, MACD, Parabolic SAR. Late but steadier. Best in trends.
Combining them wisely
- One trend tool (moving average, ADX or Ichimoku) to set direction.
- One momentum tool (RSI or stochastic) for timing.
- Levels and price action on top.
Rookie mistake
Indicator soup: RSI, Stochastic, CCI and Williams %R on one chart. They're all measuring the same thing. You've got one opinion repeated four times.
Wick says
The best "indicator" is still price. Indicators are just price wearing different outfits.
Key takeaways
- Leading = oscillators, early but noisy.
- Lagging = trend tools, late but reliable.
- Use one of each type, not five of the same.