The wildebeest indicator. If you follow the herd, odds are 99% will get through, 1% casualty rate is acceptable.
Most who consider "indicators" are thinking about range indicators.... Stochastic, RSI, %R, and CCI. All similar in function. None work so simply as "buy overbought, sell oversold". There is more to it than that. Spend some time with them learning how/when they work/don't. Properly understood, they can be useful.
When there is a consensus of oscillating indicators, MA's and price action/pattern indicators signalling long or short seems to be a starting point for me... But never just one used.... Indicators summarize price for me when I am busy. In automation they are needed. Es
Some dont believe in indicators whatsoever, some use them as a foundation for their trading. Depending on the style of trading you use certain indicators will work better than others. Most indicators are lagging and follow price action. here is a list of a few videos I put together for our clients talking about the following indicators and concepts: Using overbought/oversold indicators: Support and resistance: Range bars instead of time bars for short term trading Using Bollinger bands and parabolics The concept of Price Confirmation for entering trades
Once you've read Murphy's Book on Technical Indicators at least three times thoroughly cover-to-cover and you've experimented with every indicator to the point of building your own custom indicators you will realize that there are essentially three types of technical indicators - the plurality are just species subsets of one of the three genus. I've been doing client work for a decade now whilst trading for myself, and the most common error I see with new clients is that they truly know very little about the indicators that they have been using. Most every client I take on comes to me using technical indicators incorrectly. I commonly see traders using redundant indicators; often for confirmation - which is NOT what you want to do. (you don't really want to confirm an oscillator with another oscillator as an example) The correct use of time frame sampling (and the application of multiple time frames) is the most underutilized and underappreciated gem that I see when it comes to TA.
I find Murphy (and all books I've seen thus far on "technical analysis") to be less-than-worthless -- in other words, costly. Horrible claptrap blockheaded empirical idiocy, AND religion, all rolled into one. Now! That said?? LOVED your post. Truly good stuff. "Gold."