A single trading tool is not enough

[doomloop]

There are some traders that don't have a lot of tools or indicators while analyzing the chart because it will just make your chart look messy, which I agree with.
But there are some traders who are a fan of it as long as every indicator you are using got used and is not redundant with others.
If non-chart related, other tools like the platform that tracks volume, or inflows to exchange our outflows, like some on-chain analysis or some funding rates trackers for some exchanges. I believe they are useful too as long as you know how to use them.

Honestly the problem is not that they are making some sort of garbage soup together with all the indicators and all that, I am talking about people who put everything in there and making a situation that is a mess but may work. The real problem is that people who have no idea how to use these indicators end up using it, and creating a mess because of that, that's the problem.

If you know what you are doing then you could build something that will be a big mix of everything, but at least you know what you are looking at but if you do not know what you are looking at then it shouldn't really be mattering to you at all, makes no sense to me.

[Bamjos]

So far, I've learned that it is not ideal to use just one analytical tool, it's going to end in disaster doing that, even while trading using the timeframe, it's advices to trade multi-timeframe in order to be able to see the market from a bigger perspective.

In my techniques, I have multiple things (techniques) to carry out before entering a trade, this is otherwise called conservative type of entry. I also have used trendline in conjunction with RSI before and it worked perfectly well for me. Using multiple analytical tools help to reconfirm entries and reduces risk in trading, it's worth employing as a trading skill.

[darklus123]

Exploring to see what fits your style is I think the best thing to do in trading. Obviously, one trading tool is not enough, and having more than 3 can be confusing as well. 3 options are enough but finding the right combination is the crucial part. It may take you some time to master your strategy and when you do you start getting your profits.

Don't just follow somebody's trading style it might work for them but maybe not for you. As I have also noticed most of them will only give a portion of information about their strat because of course it is a competition after all. 

[justdimin]

whatever indicators are used if we can use them well it will generate profits. I think all of this is based on the trader's knowledge of understanding market movements. it is not uncommon for them to experience occasional losses, meaning that the signal presented is wrong, and of course a cutloss must be made, but sometimes after we cut the price the price actually goes up again. Therefore, psychological factors should not be ruled out

I would guess that if you are losing money that way, right after you sell the price goes up, then you weren't really fooled and you just weren't patient enough. I personally made many mistakes in crypto but not waiting long enough is not one of them. In fact I wait way too much instead, it goes to peak and I still end up losing profits I could have made because I didn't sell at the top.

The difference is that if you are doing something that is a bit risky and ignore all those people who told you not to do that wanted the best for you but you got out anyway. Next time, that person will wait longer than he should and learn when to sell in order to profit.

[wxa7115]

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.

What are your own it can be beneficial to someone else.

What you are describing is a trading strategy, you could use a single indicator or even no indicators to trade the market and still earn money, however by combining different indicators then you can more easily see several aspects of the market with more clarity and improve your winning rate.

However you need to be careful as adding too many indicators is a also a mistake which can end up hiding some important information or bring confusion to the trader as they receive contradictory signals.

[Mahanton]

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.

What are your own it can be beneficial to someone else.

What you are describing is a trading strategy, you could use a single indicator or even no indicators to trade the market and still earn money, however by combining different indicators then you can more easily see several aspects of the market with more clarity and improve your winning rate.

However you need to be careful as adding too many indicators is a also a mistake which can end up hiding some important information or bring confusion to the trader as they receive contradictory signals.

Doesnt really matter on how many indicators you've been using as long you could able to read it out then thats what do really counts or even naked trading or having single indicator would do but of course it would
be depending on how good or knowledgeable you are but its really that hard to make out conclusions or setting up positions on just having single indicator since you would still need lots of information or
confirmation or signals which would justify your decision whether you would sell or buy.So its hard to to make decisions without proper analysis made via these indicators.
So its really important to have this one.

[Viscore]

Not sure but using different indicators usually doesn't work for me. I agree with the above replies, using multiple indicators makes things more confusing as, most of the times, each indicator gives a totally different results.
To be honest, am not an expert when it comes to technical analysis nor am a full time trader, but when I do I rely mostly on the market sentiment indicator more than any other indicator.

There are no other indicators that are much as effective as knowing the market sentiments all the time. You can have all the trading indicators as much as you want, but even knowing only the trends and sentiments of the market will give you higher chances to succeed in trading. As long as you always read the news and keep updated with the current events, you can always use it to determine whether the market is best to trade or not.

[Johnyz]

Indicators are the best tools for me to trade and its very effective for me, I don’t use any tools aside from my top pick indicators It may not work sometimes but it simply because the market didn’t go the way to predicted it, so just adjust the indicators and the numbers, you can have a good balance of indicators that can give you enough details to decide. Have your own strategy, you can seek advices from other traders as well but its still the best to follow your own analysis.

[Mpamaegbu]

A single trading tool is never enough to achieving trading success. However, clustering charts with indicators isn't the way out too. There should be a balance struck in relation to what works for one. Perhaps, two to three indicators should do the trick. Just like you OP, I equally like using Support and Resistance and enhanced by Trendlines and Pivots Points. All the mentioned are leading indicators and they should be giving an enviable winning rate.

[stomachgrowls]

A single trading tool is never enough to achieving trading success. However, clustering charts with indicators isn't the way out too. There should be a balance struck in relation to what works for one. Perhaps, two to three indicators should do the trick. Just like you OP, I equally like using Support and Resistance and enhanced by Trendlines and Pivots Points. All the mentioned are leading indicators and they should be giving an enviable winning rate.

Okay lets put up some example on having single indicator.

Support and Resistance = You could determine the support and resistance but you would need still confirmation if there would be pullbacks or fake outs
RSI = Divergence is what you do really look after but you couldnt able to confirm if you dont able to see moving averages confirmations
EMA/MA's = You could see crossing and confirmation but you would need several indicators

which does simply shows that you would really be needing a couple or 3 or 4 depending on what you do need.

[Finestream]

Too many trading indicators means a lot of lines in your screen, I guess it's fine if you're using PC but if you're on your smartphone, then I guess it's a no because for sure you'll be confused on what you're looking. A neat looking chart is the best to spot what you're looking for before entering and closing your trade, using many indicators are cool but I'm not really sure if you need multiple to make profits.

Will, it confused me, honestly.
Too many trading tools are found and yet they are useless in real life. We'd rather use a trading indicator that we know was very helpful and seems it accompanied us. But, I don't stop people from using multiple trading tools maybe it also works for them. Is this really a matter of how we choose things that we could benefit from. If we think 1 is not good enough, then we have to add more until we find satisfying results.

People have their own unique ways to trade, and that one trader is different from another. So i don't see any mistake from having multiple trading tools, i even see it as their advantage because if a single tool does not work, then they still have those reserved tools until they end up seeing the most satisfying result. For some, it may only bring confusion, but for others they use it as an edge from other traders.

[Mpamaegbu]

~snipped~

which does simply shows that you would really be needing a couple or 3 or 4 depending on what you do need.

You're on point for seeking extra confirmation. There's every tendency that whenever two or three indis confirm the same direction, it gives a higher level of confidence to take a trade than when only one confirms. However, we've to be very careful loading our charts with indicators that we don't even get to use. That's my point. Traders who do that hardly get better results than those who use a few. The reason being that one could be missing out on trades because of conflicting signals from the so many indis on the chart. Whatever we do, it's better to keep it simple anyway.

[Webetcoins]

You need an honest truth? I believe trading is not even supposed to be for anyone or everyone, someone just can not wake up with an Android and decide to go into the market and start trading. Trading it self is very wide, it’s so broad, so I don’t understand why someone would want to make use of a phone because using a phone causes the use of just single trading tools which almost give you little or no power over the market.

For a trade to be successfully executed, there’s a need to have lots of trading tools and/or indicators placed on your PC screen rather than having them all clustered around on a 6.2 inch screen . And at the end, if better results are not achievable, speculations like “Trading is not profitable" is spread with immediate effect, blaming the market for their losses, trading with single tools is never an option, make use of a PC and indicators.

[awik p]

~snipped~

which does simply shows that you would really be needing a couple or 3 or 4 depending on what you do need.

You're on point for seeking extra confirmation. There's every tendency that whenever two or three indis confirm the same direction, it gives a higher level of confidence to take a trade than when only one confirms. However, we've to be very careful loading our charts with indicators that we don't even get to use. That's my point. Traders who do that hardly get better results than those who use a few. The reason being that one could be missing out on trades because of conflicting signals from the so many indis on the chart. Whatever we do, it's better to keep it simple anyway.

I think 2 indicators or 3 indicators are enough to start trading, indeed between indicators sometimes have conflicting signals, if they are contradictory and we have doubts, then you should not make transactions, because of course the three indi will have the same signal within a certain time . I think the EMA, stoch, and rsi indicators are enough

[gabbie2010]

~snipped~

which does simply shows that you would really be needing a couple or 3 or 4 depending on what you do need.

You're on point for seeking extra confirmation. There's every tendency that whenever two or three indis confirm the same direction, it gives a higher level of confidence to take a trade than when only one confirms. However, we've to be very careful loading our charts with indicators that we don't even get to use. That's my point. Traders who do that hardly get better results than those who use a few. The reason being that one could be missing out on trades because of conflicting signals from the so many indis on the chart. Whatever we do, it's better to keep it simple anyway.

I think 2 indicators or 3 indicators are enough to start trading, indeed between indicators sometimes have conflicting signals, if they are contradictory and we have doubts, then you should not make transactions, because of course the three indi will have the same signal within a certain time . I think the EMA, stoch, and rsi indicators are enough

Too many indicators give rise to messy charts consequently lead to conflicting signals, candlestick is one of the most important indicator, it's formations give clear signal of price exhaustion, continuation and reversal, the addition of two or three more indicators particularly EMA to indicate trend direction and RSI for price oversold and overbought is enough to create a trading strategy, Bollinga Band is another indicator to determine the trend and volatility of the price, those indicators are enough to make decent profits is properly used and utilized.

[Ziskinberg]

Too many indicators give rise to messy charts consequently lead to conflicting signals, candlestick is one of the most important indicator, it's formations give clear signal of price exhaustion, continuation and reversal, the addition of two or three more indicators particularly EMA to indicate trend direction and RSI for price oversold and overbought is enough to create a trading strategy, Bollinga Band is another indicator to determine the trend and volatility of the price, those indicators are enough to make decent profits is properly used and utilized.

That was I thought, that only it confuse us which one that are we going to follow.
Well for me, RSI and candlestick are good enough to use, we can make good analysis with that already. It is very important that we understand how to use these tools. It was indeed better to have a few trading tools to focus on. Besides, this is not the only reason why we succeed and earn a profit, it also matters how we make decision based on what we observe on the trend.

[Mpamaegbu]

~snipped~

I think the EMA, stoch, and rsi indicators are enough

Well, I wouldn't solely rely on those three indis to take trades if I were you. Except you're a professional who has been profitable using them for a while now. Those indis are "lagging". They don't get you information of where price is heading until price gets there. You should be combining them with "leading" indis of support and resistance to get strong confirmations.

~snipped~

... the addition of two or three more indicators particularly EMA to indicate trend direction and RSI for price oversold and overbought is

In practical trading, you will realize that there isn't really a thing as oversold or overbought. If you rely on that to take trades, believe me you will get severely burnt. You may succeed a few times but eventually you will be dealt with by the market for believing such terms.

[LUCKMCFLY]

Exploring to see what fits your style is I think the best thing to do in trading. Obviously, one trading tool is not enough, and having more than 3 can be confusing as well. 3 options are enough but finding the right combination is the crucial part. It may take you some time to master your strategy and when you do you start getting your profits.

Don't just follow somebody's trading style it might work for them but maybe not for you. As I have also noticed most of them will only give a portion of information about their strat because of course it is a competition after all. 

Yes, I agree, you can learn how you can act in the market if you have had a good mentor, but you have to have more alternatives, because every mentor has their flaws and is not perfect, for me we all have many flaws, and sometimes you have to follow our instinct about the market, why? in Jesse Livermore's books he always listened to his instinct about the market, the reason is simple, when he had a feeling he listened to it, because it was something out of the ordinary, luckily for him what turned out in his favor I imagine, so it's not so bad to go with the hunches or small premonitions.

[wxa7115]

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.

What are your own it can be beneficial to someone else.

What you are describing is a trading strategy, you could use a single indicator or even no indicators to trade the market and still earn money, however by combining different indicators then you can more easily see several aspects of the market with more clarity and improve your winning rate.

However you need to be careful as adding too many indicators is a also a mistake which can end up hiding some important information or bring confusion to the trader as they receive contradictory signals.

Doesnt really matter on how many indicators you've been using as long you could able to read it out then thats what do really counts or even naked trading or having single indicator would do but of course it would
be depending on how good or knowledgeable you are but its really that hard to make out conclusions or setting up positions on just having single indicator since you would still need lots of information or
confirmation or signals which would justify your decision whether you would sell or buy.So its hard to to make decisions without proper analysis made via these indicators.
So its really important to have this one.

I really think that using too many indicators hinder your ability to trade instead of helping it, a very easy exercise to see this is true is to try to add 20 indicators on a chart and see if you can actually make any conclusion with all of that information.

Another reason is that while many indicators may seem similar they are calculated in a different manner so they will give you contradictory signals and as such it will make your trading harder than if you traded with just a few indicators or none at all.

[martyns]

Exploring to see what fits your style is I think the best thing to do in trading. Obviously, one trading tool is not enough, and having more than 3 can be confusing as well. 3 options are enough but finding the right combination is the crucial part. It may take you some time to master your strategy and when you do you start getting your profits.

Don't just follow somebody's trading style it might work for them but maybe not for you. As I have also noticed most of them will only give a portion of information about their strat because of course it is a competition after all. 

A single trading tool is never enough to use for trading, traders compact more trading tools together for the sole aim to make profits, nothing more. Traders who always do copy trading in the space might one-day end up losing or getting their trading accounts liquidated. They don't just believe in their selves, always doing copy trading which sometimes, they don't know thr amount the person use in openings the trade, someone can used $2k to open a trade, unknowingly to you, copy the same trading strategy and use $200, when the market start going against you, complaints starts immediately and your accounts will get liquidated while the person you copy the trade from will still leave or opt out of the trade. The thing is just do your own strategy and believe yourself, with time you would get use to it.