Top 20 Stock Indicators For Accurate Entry Points

Last Updated: February 18, 2024 By Hemant

Moving Average Convergence Divergence (MACD)

  • CALCULATES: Difference between two EMAs; Momentum and trend direction
  • USE: Identifying trend direction, momentum, and potential reversals

Simple Moving Average (SMA)

  • CALCULATES: Average closing price over specified periods
  • USE: Smoothing out price data to identify trends and support/resistance levels

Exponential Moving Average (EMA)

  • CALCULATES: Weighted average closing price over specified periods
  • USE: Responding faster to recent price changes for short-term trend analysis

Fibonacci Retracement

  • CALCULATES: Potential support and resistance levels based on Fibonacci ratios
  • USE: Identifying potential reversal points or areas of price continuation

Relative Strength Index (RSI)

  • CALCULATES: Magnitude of recent price changes to evaluate overbought or oversold conditions
  • USE: Identifying potential trend reversals and confirming trend strength

Bollinger Bands

  • CALCULATES: Moving average and two standard deviation bands
  • USE: Identifying volatility and potential price reversal points

Stochastic Oscillator

  • CALCULATES: Relationship between closing price and price range over a given period
  • USE: Identifying overbought and oversold conditions, and potential trend reversals

Average Directional Index (ADX)

  • CALCULATES: Strength of a trend regardless of its direction
  • USE: Determining trend strength, whether it’s up or down

Volume Weighted Average Price (VWAP)

  • CALCULATES: Average price a security has traded at throughout the day, weighted by volume
  • USE: Identifying average price investors are willing to pay and assessing intraday trends

Ichimoku Cloud

  • CALCULATES: Moving averages and lines to identify support, resistance, and trend direction
  • USE: Providing a comprehensive view of the market, including trend direction and support/resistance levels

Average True Range (ATR)

  • CALCULATES: Average range between price highs and lows over a specified period
  • USE: Measuring market volatility and setting stop-loss levels

Parabolic SAR

  • CALCULATES: Following price trends to indicate potential reversal points
  • USE: Identifying potential entry and exit points in trending markets

On-Balance Volume (OBV)

  • CALCULATES: Measuring buying and selling pressure based on volume
  • USE: Confirming price trends and identifying potential trend reversals

Money Flow Index (MFI)

  • CALCULATES: Measuring the strength of money flowing in and out of a security
  • USE: Identifying overbought and oversold conditions, and potential trend reversals

Williams %R

  • CALCULATES: Measuring overbought and oversold conditions based on closing price comparison
  • USE: Identifying potential reversal points and assessing trend strength

Commodity Channel Index (CCI)

  • CALCULATES: Measuring the relationship between current price, moving average, and normal deviations
  • USE: Identifying overbought and oversold conditions, and potential trend reversals

Detrended Price Oscillator (DPO)

  • CALCULATES: Removing trend component to identify cycles or overbought/oversold conditions
  • USE: Identifying short-term market cycles and potential reversal points

Chande Momentum Oscillator (CMO)

  • CALCULATES: Measuring momentum based on the difference between up and down days
  • USE: Identifying overbought and oversold conditions, and potential trend reversals

Price Rate of Change (ROC)

  • CALCULATES: Measuring percentage change in price over a specified period
  • USE: Identifying strength of price momentum and potential trend reversals

Trix (Triple Exponential Moving Average)

  • CALCULATES: Triple-smoothing price data to identify trend reversals
  • USE: Identifying changes in trend direction and confirming price movements

About the Author

Amit is a stock market geek who loves learning new terms and predicting share prices. He spends most of his time reading up on the latest news and trends to expand his understanding of the market.

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