There are a lot of indicators that can help you to get a better idea about the trends in the market. But none of them can give you 100% accuracy. Never rely on a single indicator to get an entry for a trade. Always trade if you see a confirmation of the trend in the market. As no single indicator can give accurate entry and exit points. Always have a look at the volume in the market.
Here are some indicators that can give you an idea about the trends in the market:
Bollinger bands:
This indicator is used to check the volatility in the stock market. There are 3 types of Bollinger bands in the market. This indicator moves according to the volatility in the market, if the volatility increases then the band gets wider & if the volatility decreases then the gap decreases.
Commodity Channel Index:
This indicator is used to identify the trends in the stock market. It has 3 values: 0, +100 & -100. If it is showing a positive then the market is in an uptrend & if it is negative then the market is in a downtrend. This indicator can be used with other indicators to get confirmation about the ongoing trend in the stock market. Having knowledge about the trends in the market can help you to increase your profits. It is always advised to trade in the direction of the trend in the stock market.
Stochastic Oscillator:
This is a momentum indicator. It is also used to define the trends in the market. This indicator uses the closing price & compares it with the prices of different times. It helps to identify the price of a stock whether it's too high to take an entry or not.
NOTE: Always trade with a stop loss.
To have more knowledge about the stock market. have a look at my other blogs:
Best Intraday Trading Strategies
Importance of Timing In day Trading!!
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