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Bollinger pointed out the issu long ago:
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Avoiding Multicolinearity
A cardinal rule for the successful use of technical analysis requires avoiding multicolinearity amid indicators. Multicolinearity is simply the multiple counting of the same information. The use of four different indicators all derived from the same series of closing prices to confirm each other is a perfect example.
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Matching one's trading style is crucial elst there is failure at implementation. At least as important is that in some way the indicator actually gives actionable insights to the data set.
--- In equismetastock@xxxxxxxxxxxxxxx, "formulaprimer" <formulaprimer@xxx> wrote:
>
> I recently listened to some of the top technicians in the industry and they all are in agreement that the future of indicators are hybrids.
>
> The merging over several indicators that are not derivatives of one another... Example like momentum indicator merging with another momentum indicator but rather what you want is other variables like volume with momentum or trend or linear regression with volume or linear regression with oscillator or momentum or cycle indicator with volume accumulation or distribution etc... I'm sure you can see the variations are in the thousands and thousands... The trick is to find one that works for your own trading style.
>
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