How can we combine indicators?

<p id="isPasted">The screenshot below shows a chart with three different indicators that support and complement each other. The RSI measures and identifies momentum plays, the ADX finds trends and the Bollinger Bands measure volatility. Note here that we do not use the Bollinger Bands as a trend indicator but just for volatility.&nbsp;</p><p>We will go through points 1 to 5 together to see how the indicators complement each other and how choosing an indicator for each category helps you understand the price much better.</p><p>&nbsp;</p><p style="box-sizing: border-box; margin-bottom: 1rem; margin-top: 0px; font-family: Roboto; font-size: 18px; font-weight: 400; color: rgb(68, 68, 68); font-style: normal; letter-spacing: normal; line-height: 1.5em; text-decoration: none; text-transform: none; font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; text-indent: 0px; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255);" class="forexqa-img-container"><img src="https://prod-forexqna.s3.amazonaws.com/uploads/froala_editor/images/1739248800116.png" alt="trend_momentum_2" width="599" height="292" srcset="https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=300&amp;height=146&amp;name=trend_momentum_2.png 300w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=599&amp;height=292&amp;name=trend_momentum_2.png 599w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=899&amp;height=438&amp;name=trend_momentum_2.png 899w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=1198&amp;height=584&amp;name=trend_momentum_2.png 1198w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=1498&amp;height=730&amp;name=trend_momentum_2.png 1498w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/trend_momentum_2.png?width=1797&amp;height=876&amp;name=trend_momentum_2.png 1797w" sizes="(max-width: 599px) 100vw, 599px" style="box-sizing: border-box; border-style: none; max-width: 100%; height: auto !important; width: 730px;" class="fr-fic fr-dii fr-draggable forexqa-img"></p><p>&nbsp;</p><p>Point 1:&nbsp;Prior to point 1, the ADX shows an ongoing trend and the RSI confirms the rising momentum. During that trend, support and resistance broke as long as the ADX kept above 30 and rising.</p><p>Point 2:&nbsp;The ADX has turned and shows losing (bullish) trend strength – an indication that the support level might not break. Price did not make it past the Bollinger Bands and bounced off the outer Band.</p><p>Point 3:&nbsp;At point 3, price is in a range and the ADX loses its validity – an ADX below 30 confirms range-environment. In a range, the RSI indicator can help identify turning points together with the Bollinger Bands.</p><p>Point 4:&nbsp;The same holds true for point 4 – the ADX is still below 30. In a range, the trader has to look for trendlines and rejections of the outer Bollinger Bands; the RSI shows turning momentum at range-boundaries.</p><p>Point 5:&nbsp;Point 5 shows a momentum divergence right at the trendline and resistance level, indicating a high likelihood of staying in that range. Again, price could not get outside the Bollinger Bands and the ADX is flat.</p><p>&nbsp;</p><p>Example #2</p><p>The next chart shows that by combining a RSI with Bollinger Bands, you can get complimentary information as well.</p><p>The RSI provides momentum information: a low and falling RSI shows increasing downside momentum; an RSI around 50 signals a lack of momentum; a high and rising RSI shows strong bullish momentum.</p><p>The Bollinger Bands not only provide volatility information, but they also provide trend information: price between the middle and outer Bands shows a trending phase; price breaking the middle Band shows a potential reversal; and when price doesn’t reach the outer Band anymore, it shows fading trend support.</p><p>&nbsp;</p><p style="box-sizing: border-box; margin-bottom: 1rem; margin-top: 0px; font-family: Roboto; font-size: 18px; font-weight: 400; color: rgb(68, 68, 68); font-style: normal; letter-spacing: normal; line-height: 1.5em; text-decoration: none; text-transform: none; font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; text-indent: 0px; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255);" class="forexqa-img-container"><img src="https://prod-forexqna.s3.amazonaws.com/uploads/froala_editor/images/1739248800162.png" alt="RSI_BB" width="599" height="265" srcset="https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=300&amp;height=133&amp;name=RSI_BB-1.png 300w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=599&amp;height=265&amp;name=RSI_BB-1.png 599w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=899&amp;height=398&amp;name=RSI_BB-1.png 899w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=1198&amp;height=530&amp;name=RSI_BB-1.png 1198w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=1498&amp;height=663&amp;name=RSI_BB-1.png 1498w, https://tradeciety.com/hs-fs/hubfs/Imported_Blog_Media/RSI_BB-1.png?width=1797&amp;height=795&amp;name=RSI_BB-1.png 1797w" sizes="(max-width: 599px) 100vw, 599px" style="box-sizing: border-box; border-style: none; max-width: 100%; height: auto !important; width: 730px;" class="fr-fic fr-dii fr-draggable forexqa-img"></p><p>&nbsp;</p><p><br></p><p><br></p>