Top Technical Indicators Pairings

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While there is no single definitive answer to which specific combinations of technical indicators is the most profitable, I can try to provide some popular combinations and their application in trading strategies.
The success of these strategies depends on various factors such as the trader's skill, market conditions, and risk management techniques.

1. Moving Averages and MACD (Moving Average Convergence Divergence):

Moving averages smooth out price data to help traders identify trends. Two commonly used types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). A popular strategy is to use two moving averages with different timeframes, such as the 50-day and 200-day SMAs. When the shorter timeframe moving average (e.g., 50-day SMA) crosses above the longer timeframe moving average (e.g., 200-day SMA), it generates a bullish signal. Conversely, when the shorter timeframe moving average crosses below the longer one, it generates a bearish signal.

The MACD is a trend-following momentum indicator that calculates the difference between two EMAs of the price and then smooths it with another EMA. A common configuration is the 12-day EMA, the 26-day EMA, and the 9-day signal EMA. When the MACD line crosses above the signal line, it generates a bullish signal, while a bearish signal occurs when the MACD line crosses below the signal line. Combining moving averages with MACD can provide stronger signals, as the moving averages identify trends and the MACD helps confirm them.

2. RSI (Relative Strength Index) and Bollinger Bands:

The RSI is a momentum oscillator that measures the speed and change of price movements. The RSI ranges from 0 to 100 and is typically used to identify overbought or oversold conditions. An RSI above 70 is considered overbought, suggesting that the asset may be overvalued and due for a pullback. An RSI below 30 indicates oversold conditions, suggesting that the asset may be undervalued and due for a rebound.

Bollinger Bands consist of a moving average (usually the 20-day SMA) and two standard deviations above and below it. The bands expand and contract based on an asset's volatility. When the price touches the upper Bollinger Band, it could be a sign of overextension and an impending reversal to the downside. Conversely, when the price touches the lower Bollinger Band, it could indicate that the asset is oversold and due for a rebound.

By combining the RSI and Bollinger Bands, traders can identify potential reversal points with greater confidence. For instance, if the RSI indicates an overbought condition and the price touches the upper Bollinger Band, it could provide a stronger signal to exit long positions or enter short positions.

3. Stochastic Oscillator and ADX (Average Directional Index):

The Stochastic Oscillator is a momentum indicator that compares an asset's closing price to its price range over a specific period. The indicator consists of two lines: %K and %D. When %K crosses above %D, it generates a bullish signal, while a bearish signal occurs when %K crosses below %D. Traders often look for overbought or oversold conditions, similar to the RSI.

The ADX is a non-directional indicator that measures the strength of a trend. A rising ADX indicates a strengthening trend, while a falling ADX suggests a weakening trend. The ADX does not provide information on the direction of the trend; it merely indicates the trend's strength.

By combining the Stochastic Oscillator and ADX, traders can identify potential entry and exit points with greater confidence. For instance, if the Stochastic Oscillator signals a bullish crossover and the ADX is rising, it could indicate that the uptrend is strong, and a long position may be warranted. Conversely, if the Stochastic Oscillator signals a bearish crossover and the ADX is rising, it could suggest that the downtrend is strong, and a short position may be appropriate.

4. Support and Resistance with Volume Indicators:

Support and resistance levels are critical price points where buying or selling pressure tends to push the price back in the opposite direction. Support is a price level where buying pressure is strong enough to prevent the price from falling further, while resistance is a level where selling pressure is strong enough to stop the price from rising further.

Volume indicators, such as OBV (On-Balance Volume) or VPVR (Volume Profile Visible Range), can provide insights into the strength of price movements. The OBV is a cumulative indicator that adds volume on up days and subtracts volume on down days, reflecting buying and selling pressure. The VPVR displays the volume traded at different price levels, helping traders identify areas of high buying or selling interest.

By combining support and resistance levels with volume indicators, traders can better identify potential entry and exit points. For example, if the price is approaching a support level and the OBV is rising, it could suggest that buying pressure is increasing, and the price may bounce off the support level. Similarly, if the price is nearing a resistance level and the OBV is falling, it could indicate that selling pressure is increasing, and the price may reverse at the resistance level.

5. Fibonacci Retracements and Moving Averages:

Fibonacci Retracements are a popular tool used to identify potential support and resistance levels based on the Fibonacci sequence. By measuring the distance between a significant high and low in a price trend, traders can identify key retracement levels, typically at 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels often act as support or resistance, where price reversals might occur.

Combining Fibonacci Retracements with moving averages can offer additional confirmation for potential reversal points. For instance, if a 50-day moving average aligns with a 61.8% Fibonacci retracement level, it could strengthen the case for a potential reversal at that price point.

6. Ichimoku Cloud and RSI:

The Ichimoku Cloud is a comprehensive technical analysis tool that provides information on trend direction, momentum, and support and resistance levels. It consists of five lines: Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B, and Chikou Span. A bullish signal is generated when the price moves above the cloud, while a bearish signal occurs when the price moves below the cloud.

By combining the Ichimoku Cloud with the RSI, traders can obtain more robust signals for potential trend reversals or continuations. For example, if the price breaks above the Ichimoku Cloud and the RSI moves above 50, it could indicate a strong bullish momentum, suggesting a long position. Conversely, if the price falls below the Ichimoku Cloud and the RSI drops below 50, it could signal a strong bearish momentum, suggesting a short position.

While these combinations of technical indicators have been popular and potentially profitable for predicting the performance of SPY up to September 2021, it's crucial to remember that no strategy is foolproof. The success of a trading strategy depends on various factors, such as the trader's skill, market conditions, and risk management techniques.

7. Chart Patterns and Volume Indicators:

Chart patterns are visual representations of market psychology and can help traders identify potential trend reversals or continuations. Some common chart patterns include Head and Shoulders, Double Tops and Bottoms, Triangles, and Flags. These patterns often suggest impending price movements based on historical performance.

By combining chart patterns with volume indicators like OBV (On-Balance Volume) or VPVR (Volume Profile Visible Range), traders can gain insights into the strength of price movements and validate potential breakouts or reversals. For example, a bullish breakout from a chart pattern accompanied by increasing OBV could indicate strong buying pressure, supporting the likelihood of a sustained upward move. Conversely, a bearish breakdown from a chart pattern accompanied by decreasing OBV could suggest strong selling pressure, supporting the likelihood of a continued downward move.

8. Candlestick Patterns and Moving Averages:

Candlestick patterns are another form of visual analysis that can provide insights into market sentiment and potential price direction. Common candlestick patterns include the Hammer, Shooting Star, Engulfing Pattern, and Doji. These patterns can offer short-term signals for potential reversals or trend continuations.

Combining candlestick patterns with moving averages can help traders confirm potential trend changes or continuations. For example, a bullish candlestick pattern occurring near a rising moving average could suggest that the uptrend is likely to continue. Similarly, a bearish candlestick pattern near a falling moving average could indicate that the downtrend may persist.

9. Multi-timeframe Analysis:

Using multiple timeframes in technical analysis allows traders to gain a more comprehensive understanding of market trends and price action. By examining different timeframes, such as daily, weekly, and monthly charts, traders can identify the primary trend, intermediate trend, and short-term fluctuations.

By applying technical indicators and chart patterns across various timeframes, traders can obtain more robust trading signals and improve their decision-making process. For example, a moving average crossover on a daily chart may provide a more significant signal if it aligns with a key support or resistance level on a weekly chart.

10. Divergence Analysis with Oscillators:

Divergence analysis involves comparing the price action of an asset with an oscillator, such as the MACD, RSI, or Stochastic Oscillator. A divergence occurs when the price makes a new high or low, but the oscillator fails to follow suit, suggesting a potential reversal or weakening of the current trend.

For instance, if an asset's price reaches a new high but the RSI fails to make a new high, it could signal a bearish divergence, indicating that the uptrend may be losing momentum. Conversely, if the price makes a new low and the RSI fails to make a new low, it could signal a bullish divergence, suggesting that the downtrend may be losing steam.

By incorporating divergence analysis with other technical indicators or chart patterns, traders can enhance their decision-making process and identify potential trend reversals with greater confidence.


In conclusion, while various combinations of technical indicators, chart patterns, and analytical techniques have been popular and potentially profitable for predicting the performance, the success of a trading strategy depends on various factors, such as the trader's skill, market conditions, and risk management techniques.

Traders must continuously evaluate and adjust their strategies based on changing market conditions and consider other factors such as fundamentals, economic news, and global events. It's also essential to practice proper risk management techniques, such as setting stop-loss orders and position sizing, to minimize potential losses and enhance the overall success of a trading strategy.
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11. Bollinger Bands and OBVs:
Bollinger Bands and On-Balance Volume (OBV) are two indicators that can help traders identify moments when an asset's prices may change direction, and are also frequently used for hunting breakout opportunities.
To use these indicators, traders first wait for prices to stabilize. Next, they analyze the Bollinger Bands to see if prices have reached the upper or lower limit. If prices exceed the upper limit, it may mean that prices will increase. If prices fall below the lower limit, it may mean that prices will decrease. To confirm the trend, traders then look at the OBV. If OBV increases or decreases at the same time as prices exceed the upper or lower limit, it means that more people are buying or selling the asset, and this reinforces the idea that prices will increase or decrease.
Once traders have identified a potential movement, they enter the market by buying or selling the asset. They exit the market when prices reach the opposite upper or lower limit of the Bollinger Bands or an important resistance zone.
This is a simple strategy, but it can help traders find moments when an asset's prices may change direction. It is important to use good risk management to avoid significant losses if the market does not follow the expected trend.
Thanks to zAngus for the idea.
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12. Bollinger Bands and MACD:
By combining Bollinger Bands with the MACD, traders can identify potential entry and exit points with increased confidence. Bollinger Bands can help traders determine overbought or oversold conditions, while the MACD can confirm the momentum and trend direction.
For example, when the price touches the upper Bollinger Band and the MACD line crosses below the signal line, it could indicate that the asset is overbought and the momentum is shifting towards a bearish direction. This combination may provide a stronger signal to exit long positions or enter short positions.
Conversely, when the price touches the lower Bollinger Band and the MACD line crosses above the signal line, it could suggest that the asset is oversold and the momentum is shifting towards a bullish direction. This combination may offer a stronger signal to exit short positions or enter long positions.
Thanks to Marsian_Trader for the idea.
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13. Donchian Channel and RSI:
By combining Donchian Channel with the RSI, traders can identify potential entry and exit points with increased confidence. Donchian Channel helps traders determine price breakouts and significant support or resistance levels, while the RSI can confirm overbought or oversold conditions, providing insights into the strength of the trend.
For example, when the price breaks above the upper Donchian Channel and the RSI is below 70, it could indicate that the asset is experiencing a bullish breakout with room for further upward movement. This combination may provide a stronger signal to enter long positions or exit short positions.
Conversely, when the price breaks below the lower Donchian Channel and the RSI is above 30, it could suggest that the asset is experiencing a bearish breakout with room for further downward movement. This combination may offer a stronger signal to enter short positions or exit long positions.
Thanks to Tradertrees for the suggestion.
...for those interested, I have also published a study on the best combinations of fundamental indicators. You can find it by visiting my profile.
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14. Parabolic SAR and ADX:
By combining Parabolic SAR with the ADX, traders can identify potential trend changes and trend strength with increased confidence. The Parabolic SAR (Stop and Reverse) is a trend-following indicator that helps traders identify the direction of a trend and potential reversal points. The ADX (Average Directional Index) is a non-directional indicator that measures the strength of a trend.
For example, when the Parabolic SAR dots shift from being above the price to below it, it could indicate a bullish trend change. If the ADX is rising during this change, it suggests that the uptrend is gaining strength, and a long position may be warranted. Conversely, when the Parabolic SAR dots shift from being below the price to above it, it could indicate a bearish trend change. If the ADX is rising during this change, it suggests that the downtrend is gaining strength, and a short position may be appropriate.
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