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Smallcaps.com OVERLAY INDICATORS Print E-mail
Written by Administrator   
Monday, 11 June 2007

As all indicators work with the same dataset from the main chart, a lot of indicators are simply telling the same things. It's better to group indicators in families, depending on what they focus on, and only use one of each category. As such, you shouldn't bother about the vast amount of available indicators, and be happy with a few that you can use and understand.

Here at smallcaps.com, we use some overlay indicators (drawn over the main chart), as well as some below indicators, resulting in an easily viewable chart that covers the most that indicators have to offer. Here's what we think is a great usable selection of indicators:

  • Overlays on main chart
    1. Heikin Ashi Candle Technique
    2. Parabolic SAR
    3. Price by volume
    4. Moving averages
    5. Draw your own trend lines

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