Share Market Top Indicator are very useful for making money from share market and indicators are used to confirm whether the share price can go up or down.An indicator is a type of program or software that analyzes the trend of a stock price by looking at the past.Indicator is the most important part of technical analysis.Technical Indicator is used along with Chart Pattern and Candlestick Pattern.Using these three in which direction the stock can move.
Type Of Indicators / Share Market Top Indicator
- Leading Indicators
- Lagging Indicators
1. Leading Indicators
Leading indicators are indicators that lead to price and these leading indicators give us an advance notice of any trend or trend in the stock price but not all the indications given by leading indicators are correct and so we have to be completely above the indicators Do not trust.
Along with the use of leading indicators we must use other tools of technical analysis
Some Of The Leading Indicators:
1.RSI (Relative Strength Index )
2. MACD (Moving Convergence and Divergence)
2. Lagging Indicators
Those who follow the Indicator price are called Lagging Indicator.Lagging indicators do well to confirm the trend going on in the market and in this way it can be said that the lagging indicators tell us about the trend when the trend is already in the market it just works to confirm that trend.
Whether it is a bullish trend or a bearish trend the use of lagging indicators gives us a confirmation of the trend’s reverb that it has become a trend
Some Of The Lagging Indicators:
1.Moving Average (SMA and EMA)
How Indicators Look
Indicators are some mathematical and statistical calculations which are shown as a separate line on the technical analysis chart of a stock.According to the trends in the indicators market in the chart of technical analysis the trend can be in the form of a line above or below the trend
A number of different indicators can be used simultaneously in the Technical Analysis Chart Indicators are used by different traders to understand the direction of the market in different ways.
Meaning And Use Of Indicators
Indicators meaning – Indicators,
And in this way technical indicators use indicators so that such a chart can be seen on the chart to see how the stock is performing today compared to the past performance of the stock, and in future.How can the performance be like.
Benefits Of Indicators
- Understanding of Price Movement – The use of indicators gives us a lot of help to understand the movement of a stock.
- Price UP and LOW Level Information – Using Indicators gives us a lot of help in understanding the level of Price above and below a stock.
- Understanding TREND in ADVANCE – The use of indicators gives us a lot of help in understanding the trends of the market as well as the trends that come forward ie the Trend that comes with the confirmation of the Current Trend from the indicators can also be understood.
- Confirming Other Technical Tools – By using indicators we can also confirm the signals given by other tools of technical analysis such as – candlestick pattern, volume and support and resistance and this gives us double confirmation that we have a Whether to trade or not
Best Trading Indicators / Share Market Top Indicator
- Relative strength index (RSI)
- Moving average convergence divergence (MACD)
- Moving average (MA)
- volume indicator
- Stochastic oscillator
- Bollinger bands
- Ichimoku cloud
- Fibonacci retracement
- Average directional index (ADX)
- super trand
1. Relative Strength Index (RSI)
Relative strength index(RSI) is a technical analysis Indictor which describes a stock’s internal STRENGTH relationship with that stock’s TREND.RSI is an indicator of trading that follows the concept of buy less and sell more.It is the most simple and useful indicator of trading which tells when securities were bought more or sold more or when they were reversed.RSI can be set according to different times and can be a value between 0 and 100.In which zero indicates sell more and buy hundred more. And the value between them indicates the expected trend.
If the value of RSI is less than 30 then the stock is expected to be suppressed and if the value of RSI is more than 70 then the stock is expected to decrease.The RSI is an excellent speed indicator and if the value of a security reaches a level of 30 or 70, the trader is alerted to hold his trade slightly in the same direction.(Share Market Top Indicator)
2.Moving Average Convergence Divergence (MACD)
MACD uses the difference of two exponential moving averages to describe the direction of the trend and its momentum.Using with MACD’s EMA (signal line) gives us a reliable indicator.It is calculated by subtracting the 26-day EMA (Exponential Moving Average) from the 12-day EMA and this difference helps to form a MACD line.The positive property of a MACD spread is to indicate a higher tendency while its negative quality represents a downward trend and the difference between the two represents the strength of the trend.You can also make an indicator line (signal line) using 9 days EMA in it.
When the MACD line goes above your indicator line a signal for you to buy securities is generated and when the MACD line goes below your indicator line a signal to sell securities is generated.
3.Moving Average (MA)
It is a reliable technical indicator that traders use to understand the trends in financial assets based on daily fluctuations in their prices.Moving average technical analysis is a widely used indicator or indicator in technical analysis. Moving average (MOVING AVERAGE) gives the average value of the last period of an asset or securities.This period can be 10,15, 20, 50, 100 or 200 etc.days Each day closing price of that asset or securities is taken to calculate the moving average.
It uses the flow of value to predict changes in the value of securities.The OBV adds values in the upper days while in the lower days it decreases the values so that we can measure the pressure to buy and sell.If the closing price of the securities is above the pre-closing price the current OBV is the sum of the previous OBV and its current volume and if the closing price of the securities is below the pre-closing price then the current OBV is the difference between the previous OBV and its current volume And if the expiration value is the same as the previously closed value then the current OBV is the same as the previous OBV.
It compares the closing price of a security with all its value over a given period of time.The stochastic oscillator does not follow the value or quantity instead it follows the motion which acts as a useful indicator as the direction of motion changes before the value.It is also a limited indicator so it is also used to give information about over-bought and over-sold securities.
6. Bollinger Bands
This shows the volatility of the stock.The price of stock in this Indicator keeps moving inside its bands.The top line is called Upper Band and the bottom line is called Lower Band.When the price of the stock moves towards the Upper Band it is called Overbought and is considered a good exit point.When the price of the stock moves towards the lower band it is called Oversold and it is considered a good entry point.When the price is high up and down the band expands and when the price is low up and down the band also narrows.Thus it shows the volatility of Indicator Stock.(Share Market Top Indicator)
Ichimoku kinkō hyō also known as the Ichimoku Cloud Indicator is a versatile manual trading indicator that defines support and resistance levels identifies trend direction measures momentum and provides trading signals in Forex Does.
It is a trading system that works with all deadlines and with any device.This indicator gives traders a good understanding of different markets and helps them discover a multitude of trading opportunities with high probability so that in a few seconds we will be able to determine whether a trade with the current trend Is positive or you should wait to establish a better market in that particular pair.Ichimoku kinko hyo indicator can be used to show both uptrend or downtrend. This indicator should not be used if there is no clear trend.
This is a system trader indicator.The term “Fibonacci Retracement” is used in technical analysis which refers to resistance or support levels.Fibonacci retracement levels determine the possible support and resistance areas using horizontal lines.These levels are associated with percentages such as 23.6%, 38.2%, 61.8% and 78.6%.These are classic Fibonacci ratios used to predict potential reversal levels.
These are levels where the price may stall or reverse.In the case of a downtrend if the price returns or bounces for the 61.8% zone, a swing trader may enter a short position.Here 61.8% level is acting as resistance level.When the price reaches the bottom and bounces off the 23.6% Fibonacci line the short position can be eliminated. Here 23.6% level is acting as a support level.
This is a system trader indicator.It is constructed according to two parameters: duration and multiplier and uses the Average True Range (ATR) which indicates its value calculation and the level of price volatility.Hence the duration is the number of days ATR and the multiplier is the value that is multiplied by ATR.the signal to buy securities is generated when the supertrend closes above the expiration price limit and similarly if the supertrend closes below the expiry price limit the signal to sell securities is generated.
10.Average Directional Index (ADX)
The main use of the ADX indicator is to measure the strength of the trend without reference to the direction If the indicator reaches above the 25 line the trend is considered strong. Conversely if the indicator is below the 25 line the trend is weak or there is no trend in the market.The over 30 ADX indicator exhibits a strong trend – this is definitely the best time to get into the trade.
Sometimes traders use all three lines of this indicator – ADX, + DI, -DI. They see crosses of these lines as an additional sign of a possible reversal. And we will use the same feature of ADX in our strategy.