Technical analysis is a way to take advantage of favorable opportunities in trading because it allows riders to determine the appropriate time to enter, leave and generally manage a market position.
Technical indicators can be divided into two large families: The oscillators and trend followers.
There is one thing that is good to keep in mind when using a series of indicators and oscillators follow-trends have their strengths and weaknesses. Therefore, we must use each for what it is and, above all, have at least one of each type.
The balance of indicators:
It is easy to interpret trend followers work well for consolidated trends. They serve to signal that a trend is under way and you can join it. These are indicators inertia, so they tend to hide and compensate for changes. This is good to see clearly where a price is going overall.
Moreover, the oscillators are nervous indicators that are constantly moving from side to side of a reference line. They are the first warning of trend changes and any turning point in the price. Its main weakness is that its historic character leads them to cause false alarms constantly recommending they do not buy or sell any sense.
A good combination of indicators is often a trend follower and an oscillator. Of course, you can have more than one indicator of each type, although it is preferable to have little and know it well, and be very confused by too much information.