Tool selection

Let's take this opportunity to discuss the selection of indicators in technical analysis.

Many experts advise using only a few indicators and becoming well-versed in their behavior. This guidance is valuable for both beginners and semi-professionals.

It is principle based on the fact that charts need to be clean and since multiple indicators can send confliciting signals, a a high varienty of indicators on the same chart is certainly not helpful.

What is rarely mentioned in the literature, however, is that a truly professional approach involves being familiar with the most available tools. Professionals understand how to apply these tools in alignment with the objectives and time frame of the desired trading instrument.

Specific trading vehicles in various sectors, index groups, variable time frames, different markets, and variants in volume and range, to name only a few of the classification variants, have different trading behaviors reflected in their charting depending on the dominance of various types of market players and as such are weighed with a diversity of market players and their behaviors and as such different tools to measure such behavior like indicators and oscillators amongst others, have different edges in how to support the individual trader.

The avid trader as such never stops learning about principle-based tools and their functionality and applies the right tools in the proper context to stack his/her edge to the most accurate potential for individual trade situations.