1. Technical Indicators (Price & Volume Based)
These help analyze price trends, momentum, and possible reversal points:
Trend Indicators
Moving Averages (MA):
Simple MA (SMA) & Exponential MA (EMA) track the average price over time.
Crossovers (e.g., 50-day crossing 200-day) are strong buy/sell signals.
MACD (Moving Average Convergence Divergence):
Measures momentum and trend changes. A bullish crossover happens when MACD line crosses above the signal line.
Momentum Indicators
RSI (Relative Strength Index):
Ranges from 0–100. Overbought >70, Oversold <30.
Stochastic Oscillator:
Compares a particular closing price to a range of its prices over time. Good for spotting overbought/oversold conditions.
Volatility Indicators
Bollinger Bands:
Bands expand/contract with volatility. Price touching outer bands often signals reversal or breakout.
ATR (Average True Range):
Measures volatility; helps set stop losses based on how much a stock typically moves.
Volume Indicators
Volume:
Volume confirms price moves—higher volume = stronger move.
OBV (On-Balance Volume):
Adds volume on up days and subtracts on down days to track accumulation/distribution.
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2. Fundamental Indicators (Company Health & Valuation)
Used mostly by swing traders or long-term investors:
Earnings Per Share (EPS)
Price-to-Earnings Ratio (P/E)
Revenue Growth
Debt-to-Equity Ratio
Return on Equity (ROE)
Free Cash Flow
These show how profitable and financially stable the company is.
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3. Sentiment Indicators
Gauge how traders or investors feel about the market:
VIX (Volatility Index):
Measures market fear. High VIX = fear (often a buying opportunity).
Put/Call Ratio:
High = bearish sentiment, Low = bullish.
Short Interest Ratio:
High short interest can mean bearish sentiment or potential for a short squeeze.
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Pro Trader Tip:
No single indicator is enough on its own.
Pros usually combine indicators for confirmation—e.g., RSI for entry, MA for trend, and volume for confirmation.
If you want, I can show you how to apply these indicators to a specific stock chart or trading platform (like TradingView or ThinkorSwim). Let me know your style (day/swing/long-term) and tools you use!