You're faced with conflicting technical indicators in a volatile market. How do you make sense of it all?

Understand the fundamental principles of each technical indicator you're using. This includes how they're calculated and what they typically signify in terms of market trends or reversals. Solid knowledge of these basics helps you interpret their signals more accurately.

Navigating conflicting technical indicators in a volatile market requires a strategic approach. First, understand what each indicator measures and its behavior in various conditions. Prioritize key indicators that have shown reliability and align with your strategy. Analyze indicators across multiple time frames to get a clearer picture. Complement technical analysis with fundamental analysis to validate signals. Implement robust risk management strategies, such as stop-loss orders and position sizing, to protect your portfolio. Stay updated with market news, as external factors often explain conflicting signals. Be flexible and ready to adjust your strategy as new information emerges.

Analyze the broader market conditions and economic factors influencing the assets you're trading. Contextualizing technical signals within the current market environment provides a clearer picture of whether indicators are likely to hold true or falter.

Prioritize your technical indicators based on their historical reliability and relevance to the current market situation. Some indicators may have stronger predictive power during certain market phases than others. Establishing a hierarchy helps you focus on the most impactful signals.

Look for discrepancies or divergences between different indicators or between indicators and price movements. Divergence analysis can signal potential shifts in market sentiment or trends that may not be immediately apparent from a single indicator.

Risk management in trading is an essential practice to preserve your capital and minimize potential losses. Utilize a stop-loss order to limit losses by predefining the maximum amount you are willing to lose on a trade. This order automatically triggers the sale of your position if the market moves against you.

An interesting idea to improve the calculation of the probability of success of a given buy or sell signal is to analyze whether there is a cluster of operations in the price region in which several trades generate a signal. For example, assume a 200-day moving average where the buying rule is if P>MA (200), then buy and if P<MA (200), then sell. It would help if you used 60-minute or 30-minute charts to check whether there are clusters of trades in the crossover region. If they exist, it is likely that the movement is gaining new momentum and that the probability of generating an actual signal is high.