Navigating the sea of indicators can definitely feel overwhelming at times! No single indicator is foolproof for trend reversals, so using a combination can often provide a more reliable signal. Personally, I find using the MACD alongside the RSI to be quite effective. The MACD can help spot changes in momentum, while the RSI indicates overbought or oversold conditions.
To minimize false positives, it's beneficial to look for confluences between indicators rather than relying on just one. For instance, if the MACD crosses over and the RSI is below 30 (potential oversold condition), it might suggest a stronger reversal signal.
Candlestick patterns can also complement these signals, especially if they align with support or resistance levels identified through Fibonacci retracements.
Remember, it's crucial to keep an eye on market context and sentiment, as these can influence price movements beyond what technical indicators capture. Always test your strategies in a demo environment to see how they perform before applying them in live trading.
For further reading, you might want to check out works by John J. Murphy or Steven Nison—they offer great insights into technical analysis and chart patterns.