Top 5 Trading Indicators in the Stock Market

This article explains the top five stock market indicators Demand & Supply, Moving Averages, RSI, MACD, and Bollinger Bands helping traders read trends, momentum and volatility with clarity and confidence.

Top 5 Trading Indicators in the Stock Market

You need clear signals when you trade. Indicators help you read trend, momentum, and price reaction. They remove confusion. They help you make confident decisions with simple rules. The five indicators below give you practical and reliable information on any chart.

Automatic Demand and Supply Indicator by GTF

Automatic Demand and Supply Indicator by GTF , tool for traders who use price action and logical decision-making. The indicator marks demand and supply zones on your chart without manual drawing. These zones show where institutional buyers or sellers acted before. Price often reacts at these levels again. You save time. You avoid subjective marking. You get consistent zones across all timeframes.

Key features:

Automatic zone detection across timeframes.
Sensitivity modes that fit your risk level.
Trend detection that keeps you aligned with the larger move.
EMAs at 20, 50, and 200 periods included in the layout.
Multi time frame zone display.
Appearance controls for clean charts.
Invite only access on TradingView.

Advanced versions:

GTF Indicator 2.0: Offers enhanced precision, improved zone sensitivity, and refined trend filters.

GTF Indicator 2.0 Extended: Adds multi-timeframe candles, fundamental data overlays (like P/E ratio, earnings, market cap), and volume insights for a complete analytical setup.

Moving Averages

Moving averages smooth price so you can see direction. They work on any timeframe. They help you avoid trades that move against the major trend. The 20 EMA reacts fast. The 50 EMA helps with swing trades. The 200 EMA helps with long term direction.

How you use it:

Price above the 20 or 50 EMA shows strength.
Price below the 20 or 50 EMA shows weakness.
The 20 EMA often helps you find pullback entries in a strong trend.
The 50 and 200 EMA cross can show a shift in the larger move.

Example:

If Nifty trades above the 50 EMA for ten sessions, short trades often fail.
If price pulls back to the 20 EMA after a breakout, you can look for an entry with volume support.

Relative Strength Index

RSI shows momentum on a scale from 0 to 100. You use it to judge exhaustion or strength. You also use it to spot shifts in pressure.

How you use it:

RSI above 70 shows strong buying that may slow.
RSI below 30 shows strong selling that may slow.
RSI crossing above 50 often shows growing strength.
RSI crossing below 50 often shows growing weakness.
Divergence between price and RSI can warn you before a reversal.

Example:

If a stock makes a new high but RSI prints a lower high, you prepare for a pullback.
If price holds support and RSI recovers from 32 to 45, you watch for volume and continuation.

MACD

MACD measures trend and momentum together. It reacts slower than RSI, which helps you filter noise. You use it to confirm direction. You also use it to spot early shifts.

How you use it:

MACD crossing above the signal line shows a positive shift.
MACD crossing below the signal line shows a negative shift.
A crossover above zero supports long trades.
A crossover below zero supports short trades.

Example:

If MACD crosses above the signal line while price stays above the 50 EMA, you have a strong continuation setup.
If MACD stays below zero for several days, you avoid long trades that go against the trend.

Bollinger Bands

Bollinger Bands show volatility. They help you see if price is stretched or compressed. You use them to judge breakout conditions and reversal pressure.

How you use it:

Price touching the upper band shows expansion.
Price touching the lower band shows compression.
A tight squeeze signals low volatility. A breakout often follows.
You can combine bands with RSI or MACD for confirmation.

Example:

If a stock trades inside a narrow band range for five sessions, you prepare for a move.
If price breaks above the upper band with volume 25 percent higher than the 20 day average, continuation is likely.

Final Takeaway

You do not need many indicators. You need the right indicators. You need clear rules. The GTF Automatic Demand and Supply Indicator gives you strong levels and market structure. Moving averages guide trend. RSI and MACD show momentum. Bollinger Bands show volatility. Use two or three together. Keep your rules simple. Wait for confirmation. You improve your consistency with steady practice and clean execution.