This question is something I get pretty regularly from others. There are hundreds of indicators out there, everyone uses different indicators, different time frames, different periods within an indicator and more. So how are you supposed to figure out what to use and how to use. Well one thing I recommend is just finding a few basic indicators and learning those and seeing if they can be combined together to help you enter and exit your trades.
Probably the most important thing to do is make sure you have indicators from different categories so you aren't seeing the same thing twice that may make you super convinced about entering a trade even though you are looking at the same info. An example of this is using MFI and RSI on your chart, both of these display Overbought/Oversold levels so in most cases you don't want to have both of these indicators on your chart because they are showing esentially the same information.
Check out this handy chart below that categorzies the different indicators, this makes it easy to pick 1 indicator from a few different categories to give you a better overall picture of the stock chart.
So let me break this down for you, you want to check out the indicator portion of the chart above. I recommend looking at the Trend, Momentum, Volume and Volatility categories.
If you are trading stocks pick 1 from the Trend, Momentum and Volume categories.
If you are trading options pick 1 from the Trend, Momentum, and Volatility categories.
Having these indicators will give you a better understanding of the chart and provide more data for you to review to make an educated and smart trade decision.
What are some of the indicators you like to use? Do you pick indicators from different categories? Let me know your thoughts in the comments!