INDICATOR REDUNDANCY – DUPLICATE SIGNALS

Indicator redundancy means that a trader uses different indicators which belong to the same indicator class and then show the same information on a trader’s charts.
The screenshot below shows a chart with 3 momentum indicators (MACD, RSI and the Stochastic). Essentially, all 3 indicators provide the same information because they examine momentum in price behavior.
You can see that all indicators rise and fall simultaneously, turn together and also are flat during no-momentum periods (red boxes).

The next screenshot shows a chart with 2 trend indicators (the ADX and the Bollinger Bands). Again, the purpose of both indicators is the same: identifying trend strength.
You can see that during a trend, the Bollinger Bands move down and price moves close to the outer Bands. At the same time, the ADX is high and rising which also confirms a trend.
During a range, the Bollinger Bands narrow and move sideways and price just hovers around the center. The ADX is flat or going down during ranges giving the same signal