Technical toolkit
The idea
RSI summarizes the balance of recent upward and downward changes. MACD compares moving averages. ATR measures the size of recent ranges, including gaps; it does not predict direction. Indicators often share the same underlying prices, so several agreeing indicators may not provide independent evidence.
A worked example
An RSI reading above 70 can persist during a strong trend. Selling only because of that reading ignores the market environment.
Try it yourself
Choose one momentum indicator and one volatility measure. Write down what each calculates and what it cannot tell you.
A mistake to avoid
Counting three similar momentum indicators as three independent reasons to trade.