Have you ever asked yourself: “How many technical indicators should I use?”
There are tons of indicators to choose from. Should you use the MACD, RSI, Stochastics, Bollinger Bands, VWAP….the list goes on and on.
It's important to keep in mind that the most reliable indicators are price action and volume. Price action provides us with plenty of data and clues in regards to what the overall sentiment is for any stock.
I personally use Price Action, Volume, Moving Averages, and Bollinger Bands to assist with my trading decisions and to help determine if there is a higher probability of the stock price increasing or decreasing. Consider keeping your charts as clear as possible by choosing just a few indicators, as it can be difficult to make trading decisions when your charts are flooded with too many indicators and contradictory signals.
The technical indicators you choose to use is personal preference. Keep in mind there are no perfect indicators. You may also want to consider experimenting a bit by backtesting your strategy to determine which indicators are going to be the best fit. When in doubt consider focusing on price action and volume.
Lastly, if you don't have a good foundation in candlestick analysis or how to analyze price action, you'll want to learn these skills first before diving into technical indicators and other advanced topics.