One-indicator trading: if you could keep only one, which?
Strip the chart to a single indicator and it has to earn its place: moving average for trend, RSI for momentum, ATR for volatility, Bollinger for extremes. The choice reveals your whole approach.
Which do you keep?
- the indicator and how you'd trade with only it
- what you lose without the others
- the experiment that taught you minimalism
The moving averages, RSI and ATR guides cover the candidates.
Background: Moving averages explained: SMA and EMA
Moving averages smooth out price noise to show the trend. How simple and exponential averages are calculated, which periods traders use and where they fail.
What is the difference between SMA and EMA?
An SMA weights every period equally. An EMA gives more weight to recent prices, so it responds faster to new moves but can give more false signals.
What is a golden cross?
When a shorter moving average, typically the 50-period, crosses above a longer one, typically the 200-period. Many traders read it as a sign of a strengthening uptrend.
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