Top 3 Indicator Combinations from IQ Option

Top 3 Indicator Combinations from IQ Option


The analysts at IQ Option have released their top 3 technical indicator combinations to be a successful trader; it is a very interesting a useful analysis. The article starts off with a simple yet important piece of advice, when it comes to combining different technical indicators, do not overdue it. Having too many indicators on a chart will not necessarily improve your results, and in fact, they actually may end up confusing you or confirming the wrong signals


Before IQ Option explains their 3 favorite indicator combinations, they want to reiterate the importance of understanding the different categories of indicators. Make sure you understand the difference between these categories and how the indicators will affect your charting. There are 4 distinct technical indicator categories:


• trend indicators
• momentum indicators
• volume indicators
• volatility indicators

IQ Option thinks the 3 most important technical indicator combinations for charting are RSI and Bollinger bands, the Simple Moving Average and the Stochastic Oscillator, and the ATR and Parabolic SAR. The analysts at IQ Option continue to break down why these are 3 of the most important technical indicator combinations, so we will address them below.


With the combination of the RSI and Bollinger Bands, these indicators can signal a buy signal when the candlesticks cross the bottom line of the Bollinger Band and the RSI line crosses the oversold level and moves up. They can produce a selling signal when when the candlestick crosses the upper Bollinger Band and the RSI is in the “overbought” level.

The Simple Moving Average and Stochastic Oscillator will show an upward trend when the chart breaks the Simple Moving Average line from below going upwards and the blue Stochastic Oscillator line crosses the red Stochastic Oscillator line. When the opposite is happening, it is an indication that there is going to be a downward trend.  


The final combination of technical indicators mentioned is the ATR and the Parabolic SAR. When you combine these two technical indicators, you would watch for potential trends by monitoring the Parabolic SAR. When the dotted line is below the price chart, that indicates a buy signal and a potential upward trend. When the dotted line is above the price chart, this is an indication of a sell sign and a potential downward trend. When the Parabolic SAR moves from one position to the other, this could be an indication of a possible good entry point.

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