Combine Multiple Indicators
Single indicators give signals — combining them gives confidence. Learn how to build a confluence scoring system that weighs multiple indicators for stronger, more reliable trading signals.
The Confluence Approach
Instead of relying on a single indicator, score each signal and sum them up. More indicators agreeing = higher confidence in the trade.
RSI
Momentum
MACD
Trend + Momentum
SMA Cross
Trend Direction
Confluence Scoring System
import requests
API_KEY = "YOUR_API_KEY"
BASE = "https://tickatlas.com/v1"
headers = {"X-API-Key": API_KEY}
def confluence_score(symbol, timeframe="H1"):
"""Score a symbol based on multiple indicator signals."""
params = {
"symbols": symbol,
"indicators": "RSI_14,MACD_main,MACD_signal,ADX,SMA_50,SMA_200,BB_Upper,BB_Lower",
"timeframe": timeframe
}
data = requests.get(f"{BASE}/multi", headers=headers, params=params).json()
ind = data.get(symbol, {})
score = 0 # -4 (strong sell) to +4 (strong buy)
# RSI
rsi = ind.get("RSI_14", 50)
if rsi < 30: score += 1 # Oversold = bullish
elif rsi > 70: score -= 1 # Overbought = bearish
# MACD
macd = ind.get("MACD_main", 0)
signal = ind.get("MACD_signal", 0)
if macd > signal: score += 1
elif macd < signal: score -= 1
# Trend (SMA Golden/Death Cross)
sma50 = ind.get("SMA_50", 0)
sma200 = ind.get("SMA_200", 0)
if sma50 > sma200: score += 1
elif sma50 < sma200: score -= 1
# ADX trend strength
adx = ind.get("ADX", 0)
if adx > 25: score = int(score * 1.5) # Amplify in strong trends
return {
"symbol": symbol,
"score": score,
"signal": "STRONG BUY" if score >= 3 else
"BUY" if score >= 1 else
"NEUTRAL" if score == 0 else
"SELL" if score >= -2 else "STRONG SELL",
"details": {"rsi": rsi, "macd": macd, "adx": adx,
"sma50": sma50, "sma200": sma200}
}
# Test it
for sym in ["EURUSD", "GBPUSD", "XAUUSD", "USDJPY"]:
result = confluence_score(sym)
print(f"{result['symbol']}: {result['signal']} (score: {result['score']})") Best Indicator Combinations
RSI + MACD + SMA
Classic combo: momentum + trend confirmation. Works on all timeframes.
Bollinger Bands + RSI
Volatility + momentum. Great for mean-reversion in ranging markets.
ADX + Parabolic SAR + EMA
Trend strength + direction + dynamic support/resistance.
Stochastic + CCI + MFI
Triple oscillator combo for spotting reversals with volume confirmation.
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Bollinger Bands (BB)
Bollinger Bands consist of a middle SMA band with upper and lower bands at standard deviations.
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