You sit in front of the screen, ready to trade. You open your chart and it looks like a piece of abstract art: you have three moving averages, the RSI, the MACD, the Bollinger Bands, the Ichimoku Cloud, and lines everywhere. 😵💫
You look at the price: the RSI tells you to "buy", but the MACD signals "sell" and the moving averages are flat. You get confused, doubt, and by the time you make a decision, the movement has already passed or you entered too late and poorly.
Welcome to Analysis Paralysis.
Why do we do this to ourselves?
Deep down, filling the screen with indicators is an attempt by our brain to find certainty and security. We mistakenly believe that the more information we have, the less risk we will take. We look for the "magic indicator" that will protect us from losing money.
But trading is not about certainties, it is about probabilities.
The problem is that most indicators are "lagging" (they are delayed) and, having too many, you will receive contradictory signals. This saturates your decision-making ability and generates anxiety. Instead of analyzing the market, you end up analyzing your indicators.
How to clean your chart (and your mind):
Price is King 👑: Remember that indicators are derived from price. Learn to read Price Action (candles, supports, resistances, and structure) before adding anything else. The clean chart tells you the real story; indicators are just the summary.
The Rule of 3: Try not to use more than 2 or 3 indicators at a time, and make sure they don't measure the same thing. It makes no sense to have 3 oscillators (RSI, Stochastic, and CCI) together; they will all tell you the same thing. Use one for trend and another for momentum, for example.
Master a single strategy: It is better to be a master using just one Moving Average and Supports than to be mediocre interpreting ten complex tools.
Final reflection
A saturated chart is often a reflection of a confused mind. Visual clarity gives you speed of execution. If you have to move lines to see where the price is, it's time to do some cleaning.
Simplicity is the ultimate degree of sophistication in trading.
Honest debate 👇
How many indicators do you have active right now on your screen? Are you willing to try a week trading with the chart without anything? I’m listening.
This content is exclusively educational and reflects a personal opinion on psychology and trading methodology. It does not constitute financial advice or investment recommendation. Trading involves risks; manage your capital responsibly.
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