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Indicators to get a more comprehensive view of the market.
Using a combination of different indicators can help provide a more comprehensive view of the market and increase the chances of success for a trading strategy. Some common combinations include:
- Trend-following and oscillators: Combining trend-following indicators, such as moving averages, with oscillators, such as the RSI or Stochastic oscillator, can help confirm trend strength and identify potential trend reversals.
- Trend-following and momentum: Combining trend-following indicators with momentum indicators, such as the CMF or OBV, can help confirm trend strength and identify potential trend reversals.
- Oscillators and volatility: Combining oscillators with volatility indicators, such as the Average True Range (ATR), can help identify potential trade opportunities and set appropriate stop-loss orders.
It is important to note that no indicator is perfect and all indicators have their limitations. It is recommended to test different indicator combinations using historical data to see which ones work best for a particular trading strategy.