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Tips on Using Multiple Trading Indicators:

In our opinion, every trader should use at least 3 - 5 dissimilar trading indicators, for the following reasons:

• No system of technical analysis is ever 100% accurate (just as there is no analyst, who can predict trends with 100% accuracy, nor a publisher, who can always report events with 100% veracity);
   
• Sooner or later, a trader using only a single indicator (or advisor, as the case may be), is prone to be blinded by this indicator (or: by this one advisor). The resulting "tunnel vision" will prevent him or her from ever seeing beyond what this indicator can measure (predict);
   
• As a rule of thumb, if the use of an additional indicator can reduce your trading risk and cut your losses by 5%, then it is most certainly worth the price you might have to pay for it;
   
• For best results, pick among indicators based on dissimilar (or at least not strongly correlated) forms of analysis. An example might be a trading approach based on input from the following three very different (independent) sources: news releases, market sentiment data, and volume signals;
   
• The advantage of using purely technical indicators is that they remain untarnished by personal emotions, which can cloud trading decisions;
   
• Traders who do not wish to rely on several independent market analysis techniques (indicators) may wish to use the services of professional trading advisory services.

Each indicator may play a different role in making a trading decision:

• Indicators vary in their degree of accuracy and level of sensitivity (responsiveness). In order to establish these parameters, you will sometimes need to observe an indicator in action for several months;
   
• Avoid making trading decisions based solely on one indicator. If your indicator led you to a bad trading decision, it is not necessarily the indicator that is at fault; rather, it could mean you neglected to confirm the validity of the signal with another indicator (given the particular trading situation);
   
• It therefore pays to scrutinize the results you achieve with your indicators closely.

A few more tips:

• As a trader, try to become emotionally detached - you cannot afford to have your emotions lead you astray;
   
• Be wary of free trading advice you might find on the Internet. Try to determine exactly where the advice comes from and who might benefit from giving it to you;

We highly recommend that you always analyze price and volume as a pair. In other words, always complement an indicator based on price movement with one that interprets volume action. If you use one without the other, you are missing a vital piece of the puzzle - you are not getting the full market picture. Remember: There is no market without price movement, and there is no price movement without volume.

MarketVolume™ (www.MarketVolume.com) is the only source of intraday real-time volume charts for the major US indexes and exchanges. MarketVolume™ charts are used by institutional investors and individual traders alike.