How many indicators is TOO MANY on one instrument?

[nando5_official]

I see a lot of traders with many tools on one chart and others with very simplistic indicators (trend lines, S&R). Would it be too much to have a Fibonacci, Ichimoku and S&R lines all in one chart?

 

[tomorton]

The fewer the better usually. Very few profitable strategies need more than 2 ways to identify s/r and more than 2 off-chart technical indicators.

But you might be coming at this from the wrong direction. Your trading strategy should tell you how many indicators and which indicators are needed to make it run profitably. You won't get a better strategy simply by using more indicators.

 

[timsk]

I see a lot of traders with many tools on one chart and others with very simplistic indicators (trend lines, S&R). Would it be too much to have a Fibonacci, Ichimoku and S&R lines all in one chart?

Hi nando5_official,
Welcome to T2W.

In answer to your question, there is no figure. The right number of indicators - which includes having no indicators at all - is the number that enables you to extract a consistent profit from the market. So, that could be zero, one, five or fifty etc.
Tim.

 

[malaguti]

Hi nando5_official,
Welcome to T2W.

In answer to your question, there is no figure. The right number of indicators - which includes having no indicators at all - is the number that enables you to extract a consistent profit from the market. So, that could be zero, one, five or fifty etc.
Tim.

Amen
whatever it takes nando5. dont listen to anyone who says indicators dont work. they just haven't managed it. its not about the number of indicators, its just the right ones

 

[khongminhtn]

Looook who I ran into Fernanny nannyyyy

 

[activecommodity]

I usually work with only one-two indicator. Just keep changing time frames. I have different setup for gold, silver and oil trades. Different setup for fx, dow trades.
So my answer would be maximum 2-3 not more than that as it would complicate your chart

 

[nando5_official]

looook who i ran into fernanny nannyyyy

i'm dead

 

[trendie]

its always going to be the law of diminishing returns.
for example, if you have one indicator that gives you a 60% success rate, any new indicator will only improve your chances by smaller increments.
there will also be the possibilities that another indicator actually keeps you out of an otherwise good trade. or, if you're waiting on a second confirming signal, you get in a few bars later, costing you pips.

the question could equally be if the excess of indicators reflects a lack of confidence in the self, (constantly seeking affirmation), or reflects the fear of loss, or the attempt to impose perceived control on an apparently wayward market.

personally, I have 2 on the lower frame, and 2 on the chart. ( not counting the fractals which show me the Highs/Lows)
my excuse is that indicators are easier to code into signals, whereas eyeballing trend is more an art.

 

[mason_ritter]

Different people have different preferences, but keep in mind that using too many indicators at the same time may end up giving you contradicting signals.