Which technical indicator is more important or effective in stock market?

Which indicators more effective in stock market?


There are many indicators in the market that work effectively but it depends on which one suits you. An indicator has its individual characteristics. It is important to note what exactly these indicators show.  Exponential moving average, Simple Moving Average, Pivot point, Bollinger bands, and many other. There are many indicators available to you in the chart but you should use the one that works for you.

Let us continue with our topic before that, Hello friends, myself Vikas your friend and we are talking about which technical indicators is more effective. I'm going to tell you which indicators I use and why?

I have listed below the indicators that I use myself. I will tell you in short why this indicator is used but we will go into detail about this in a separate blog.

1. RSI (Relative strength Indicator): 


The RSI indicator is a momentum indicator that shows you the speed of the market. From this you can know how strong a trend is. Right, this indicator tells you whether the price is currently in the buying zone or the seling zone, that is what we call over bought and over sold zones. We will write a separate blog on this as we will learn more about it.

2. Simple Moving Average: 


I like this indicator the most. Very simple to use, what an average is, The current price is shown by averaging the data of the past price. And it's called Moving Average because it's moving with Price. If you use a moving averages on a larger time frame like Daily chart, 1h chart,  then accuracy of  moving average also increases. 

I personally use 20MA and 44MA. I will definitely tell you how to take entry, how to take exit, where to put stop loss, let's see later when I will do a special blog on moving Average. 

3. Bollinger Bands


This is also a very important indicator. These indicators try to show us the volatility in market. whether buyer are aggressive or sellers are aggressive and whether there is any movement in the market. 

The middle band in the Bollinger Band is 20 SMA and it is said that 20SMA is the strongest moving average on it. We are going to write a separate blog on this too, so let's check it out in the next blog.

4. Pivot points


This is my second favorite indicator and if used with a Moving Average for confirmation, the two together give absolutely perfect results. Another important thing about this indicator is that this indicator is not a lagging indicator. Indicators work to show you support and resistance. We will learn more about this when we write a separate blog just on pivot points.  

Before ending the blog I would like to tell you a little bit about lagging indicator and leading indicator.

Lagging Indicators:

 Indicators run on the basis of the price are called lagging indicators. To put it more simply, These indicators move in response to the price. Moving average, RSI, Bollinger Bands, are lagging Indicators.

Leading Indicators: 

Indicators that do not move with the price or try to lead the price. Pivot point indicators give us fixed support and resistance zones. There the price rejects from the resistance and falls down and goes up with support from the support zone. Pivot Point is the only indicator that is a leading indicator. 

When you trade the market, don't rely on just one indicator, use additional indicators that will give you multiple confirmation. So that your chances of losing trades are reduced. 

So this is the end of today's blog, let us know how much you liked this blog by commenting and what else you like to know. Your comments encourage us to write many new blogs so please comment Us.

One thing to say on the go is Price Supreme because of him respect Price the most, let Price be where she's going and your indicators will tell you accordingly. 

Bye take care, happy trading.

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