Why You Should Avoid Duplicate Indicators?

Duplicate indicators generally refers to using multiple tools that are built from very similar underlying calculations or that tend to move together closely, even if they have different names. For example, as covered in the KDJ unit, KDJ and the traditional Stochastic Oscillator share the same core %K/%D foundation — using both together provides little additional independent information beyond what either provides alone.

If two indicators are built from similar underlying logic, they will tend to signal similar things at similar times, which can create an illusion of strong, independent confirmation when, in reality, the same underlying information is simply being counted twice. This connects to the trend + momentum + volatility framework from the previous lesson, which is specifically designed to avoid this by drawing on genuinely different analytical dimensions.

As covered throughout this module, RSI and KDJ, while calculated differently, both function as bounded momentum oscillators with overbought/oversold zones, and can behave somewhat similarly to each other. Similarly, using multiple moving averages of very similar period lengths (such as a 48-period and 52-period average together) provides limited additional distinct information compared to using moving averages that are meaningfully different in period length, as covered in the Common Moving Average Periods lesson.