We have many signals to choose from in trading, but we need to focus on the most important ones. It’s important to start with the core roles of trend, momentum, volatility, and timing. For trend detection, we can use ADX and SuperTrend, with ADX showing strength and SuperTrend providing confirmation. We can also add Ichimoku for a broader context.
For momentum, we will use MACD, RSI, and Shaft Trend Cycle. MACD gives crossover signals and RSI identifies overbought or oversold areas, while Shaft Trend Cycle helps time cyclical moves. For volatility, ATR is essential, and Bollinger Bands can help with breakout and mean reversion strategies.
We can also include price-based signals like candle patterns and parabolic SAR, which can serve as a trailing stop. For managing risk, Ulcer Index or Vortex can help avoid trading during tough periods.
We’ll layer our signals, starting simple and then combining them. The key is adaptability and testing across different timeframes. We should prioritize ADX, MACD, RSI, ATR, Ichimoku, and Bollinger Bands and then backtest them to see how they perform. Lastly, it’s crucial to remember risk management as we move forward.
