Which is best technical indicator to trade in stock market?

Some of the most widely used and effective technical indicators include:

1. Moving Averages (MA)

• Simple Moving Average (SMA): Helps smooth out price data to identify the direction of the trend.
• Exponential Moving Average (EMA): Gives more weight to recent prices, making it more responsive to new information.

2. Relative Strength Index (RSI)

• Purpose: Measures the speed and change of price movements to identify overbought or oversold conditions.
• Usage: RSI values above 70 typically indicate overbought conditions, while values below 30 indicate oversold conditions.

3. Moving Average Convergence Divergence (MACD)

• Purpose: Shows the relationship between two moving averages of a stock’s price.
• Usage: A bullish signal occurs when the MACD line crosses above the signal line, and a bearish signal occurs when it crosses below.

4. Bollinger Bands

• Purpose: Consists of a middle band (usually an SMA) and two outer bands that represent standard deviations of the price.
• Usage: Prices near the upper band may indicate overbought conditions, while prices near the lower band may indicate oversold conditions.