The urgency of the problem:

Watching the trading strategies of novice traders often face the problem of misuse of the indicators and the definition of the input signals in the position of using them. The problem is not in the signals (they are mostly correct), and that the misused indicator does not function as an additional filter signal, and works as an indicator of duplicating the first signal. And this is not an additional filter signal and additional error duplication first signal.
The terms and definitions:
Referring to http://en.wikipedia.org/wiki/Multicollinearity we find classical concept associated with the analysis of statistical data and econometric models building.
Multicollinearity - mathematical statistics is a term used to describe a close correlation relationship between sampled for analysis of factors combined effect on the overall result.
In mathematics, the terms of collinearity - the relationship between the two studied Objects and multicollinearity relationship between more than two (many) of the test object. Last term was introduced by Nobel laureate Ragnar Frisch.
Introduction:
Multicollinearity is a problem also in technical analysis. It arises when we a…