The Moving-Average Convergence/Divergence line or MACD is probably the most widely used technical indicator. Along with trends, it also signals the momentum ...5BestTechnicalIndicatorsforstockseverytradershouldknow|MotilalOswal5BestTechnicalIndicatorsforstockseverytradershouldknow|MotilalOswalOpenanAccountLearnBlogDetailsBestTechnicalIndicatorsforstocksmarketInordertobecomeasuccessfulinvestor,weneedtobeabletodeveloptwodistinctsetsofskills:fundamentalandtechnicalanalysis.Theyareverydifferentyetequallyimportanttolearnifyoutrulywanttounderstandwhatisgoingonwithyourstocks.Fundamentalanalysisisessentiallydiggingintoacompany'sfinancials.Fundamentalanalystsstudyeverythingthatcouldpotentiallyaffectacompany'svalue.Thiscanincludebothmacroandmicroeconomicfactorsaswellasthecompany'sstrategicplanning,supplychainandevenemployeerelations.Technicalindicators,collectivelycalled"technicals",aredistinguishedbythefactthattheydonotanalyzeanypartofthefundamentalbusiness,likeearnings,revenueandprofitmargins.Themosteffectiveusesoftechnicalsforalong-terminvestoraretohelpidentifygoodentryandexitpointsforthestockbyanalyzingthelong-termtrend.Whatisa'TechnicalIndicator'Intechnicalanalysisofstocks,atechnicalindicatorisamathematicalcalculationbasedonhistoricprice,volume,or(inthecaseoffuturescontracts)openinterestinformationthataimstoforecastfinancialmarketdirection.Technicalindicatorsarefundamentalpartoftechnicalanalysisandaretypicallyplottedasachartpatterntotrytopredictthemarkettrend.Indicatorsgenerallyoverlayonpricechartdatatoindicatewherethepriceisgoing,orwhetherthepriceisinan"overbought"conditionoran"oversold"condition.Manytechnicalindicatorshavebeendevelopedandnewvariantscontinuetobedevelopedbytraderswiththeaimofgettingbetterresults.Newtechnicalindicatorsareoftenbacktestedonhistoricpriceandvolumedatatoseehoweffectivetheywouldhavebeentopredictfutureevents.Technicalindicatorslooktopredictthefuturepricelevels,orsimplythegeneralpricedirectionofasecurity,bylookingatpastpatterns.Therearedozensofin