I have reached MY answer to an important question, and I am not alone in asking it — many experienced traders here on this site eventually reach this exact realization,
Most indicators are derived from the same data (price and volume), and many are just variations of each other — meaning they tend to behave similarly, especially during the same market regimes.
I have written or adjusted over 200 scripts in the 2 years I have started using TOS. I have in theory made a “sandwich” about as many ways there is to make a “sandwich” and I have come to realize, even though one may taste better to me than others, that they are all the same “sandwich”.
Why Many Indicators "Act the Same"
Most of them are just different smoothing techniques applied to price behavior.
So Should You Use Just 1–2 Indicators?
In many cases, yes — but with intentional diversity. Ideally, you want one indicator per category:
The Ideal Setup for Clarity
You don’t need 10 indicators — but you do need balance and context. Here’s an example minimalist but high-signal setup:
My Final Thought
Instead of stacking indicators, stack edges from different dimensions- price structure, momentum, volatility, and volume. (Maybe throw in MTF for another level of validations)
I have developed a Studies Set, but it includes some VIP scripts that I can not share here. This set has done very well this week and will need others to use it to validate its success rate and profit ratio. My suggestion is you join the VIP section, cheap for what you get. I will be writing up directions for use soon. (the only thing extra I might add are the previous day high and lows, they seem 50% of the time to act as support and resistances)
mod note:
Most indicators are derived from the same data (price and volume), and many are just variations of each other — meaning they tend to behave similarly, especially during the same market regimes.
I have written or adjusted over 200 scripts in the 2 years I have started using TOS. I have in theory made a “sandwich” about as many ways there is to make a “sandwich” and I have come to realize, even though one may taste better to me than others, that they are all the same “sandwich”.
Why Many Indicators "Act the Same"
- They’re all based on price and/or volume.
Most of them are just different smoothing techniques applied to price behavior.
- Indicators lag — and they often confirm the same thing.
- Multiple indicators ≠ more signal.
So Should You Use Just 1–2 Indicators?
In many cases, yes — but with intentional diversity. Ideally, you want one indicator per category:
| Category | Use One Tool | Examples |
| Trend | Directional bias | Moving Average, ADX |
| Momentum | Strength of price movement | RSI, MACD, Stochastic |
| Volatility | Expansion/contraction | ATR, Bollinger Bands |
| Volume-based | Confirmation of price moves | OBV, VWAP, Accum/Distrib |
| Price action | Structure/patterns | Candlesticks, pivots, HH/LLs |
The Ideal Setup for Clarity
You don’t need 10 indicators — but you do need balance and context. Here’s an example minimalist but high-signal setup:
- Price Action + EMAs – tells you trend and structure.
- RSI or Stochastic – shows momentum + potential reversal points.
- Volume or VWAP – confirms participation.
My Final Thought
Instead of stacking indicators, stack edges from different dimensions- price structure, momentum, volatility, and volume. (Maybe throw in MTF for another level of validations)
I have developed a Studies Set, but it includes some VIP scripts that I can not share here. This set has done very well this week and will need others to use it to validate its success rate and profit ratio. My suggestion is you join the VIP section, cheap for what you get. I will be writing up directions for use soon. (the only thing extra I might add are the previous day high and lows, they seem 50% of the time to act as support and resistances)
mod note:
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