The following are the top Eight indicators for trading:
- Exponential Moving Average (EMA)
- ADX
- CHANNELS
- On Balance Volume (OBV)
- Convergence and divergence of moving averages (MACD)
- Index of relative strength (RSI)
- Stochastic
- Parabolic SAR
You don't have to use them all, instead, pick a few that you think would help you to trade.
Example of Exponential Moving Average (EMA) and MACD:-
"Trend in stock market" or "how to find Trend in stock market?"
Please look at the picture above where we can find the answer of this question.
- "EMA" or "Exponential Moving Average" is a "trend following Indicator". When "EMA" is going up, it indicates an "Up Trend" and when "EMA" going down, it indicates a "Down Trend" ("Downtrend").
- "MACD-Line" also is a "Trend Following Indicator". "MACD LINE" shows "Up Trend" when it remain above "0" Line. "MACD LINE" shows "Downtrend" when it remain below "0" Line.
- "MACD-Histogram" is an "Oscillator". "MACD HISTOGRAM" helps us as an "ENTRY EXIT INDICATOR"
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