best three Technical indicators of Stock market Secret method to use best three indicators.

best three Technical indicators of Stock market Secret method to use best three indicators.

Best Three Technical Indicators for Stock Market Trading & Secret Methods to Use Them

Using the right technical indicators can help traders make informed decisions in the stock market. Here are the three best technical indicators along with secret methods to use them effectively:

1. Moving Averages (MA & EMA) – Trend Direction

Secret Method: Use EMA (Exponential Moving Average) for Faster Signals

• What it does: Moving Averages smooth out price fluctuations to identify trends.

• Best settings:

  • 50-day & 200-day Moving Averages – Great for long-term trends.

  • 9-day & 21-day EMA – Perfect for short-term traders.

• How to use it:
   Buy when the short-term EMA crosses above the long-term EMA (Golden Cross).
   Sell when the short-term EMA crosses below the long-term EMA (Death Cross).

2. Relative Strength Index (RSI) – Overbought & Oversold Levels

Secret Method: Combine RSI with Divergence for Powerful Signals

• What it does: Measures momentum and determines if a stock is overbought (>70) or oversold (<30).

• Best settings: Default 14-period RSI, but use 7-period RSI for faster signals.

• How to use it:
  Buy when RSI is below 30 and starts moving up.
  Sell when RSI is above 70 and starts moving down.
  Divergence Strategy: If the price makes a new low but RSI makes a higher low, it signals a potential trend reversal (Bullish Divergence).

3. MACD (Moving Average Convergence Divergence) – Trend & Momentum Indicator

Secret Method: Use the MACD Histogram for Early Entry & Exit

• What it does: Shows trend direction and momentum strength using two moving averages.

• Best settings: 12, 26, and 9 (default settings work best)

• How to use it:
  Buy when the MACD line crosses above the signal line (Bullish Crossover).
  Sell when the MACD line crosses below the signal line (Bearish Crossover).
  Watch the MACD Histogram:

  • If the histogram bars start shrinking, it signals a trend reversal.

  • If the bars increase, the trend is getting stronger.

Secret Strategy: Combine These 3 Indicators for Maximum Accuracy

• Step 1: Look for a Golden Cross on EMA (50-200 or 9-21 EMA) → Confirms trend direction.

• Step 2: Check if RSI is above 30 but below 70 → Confirms strength.

• Step 3: Watch for a MACD crossover & histogram strength → Confirms entry/exit point.

This combination increases the probability of accurate trades and reduces false signals!

Would you like help with chart examples or backtesting strategies?

Here’s a focused, strategic breakdown of the 3 best technical indicators in the stock market — along with a “secret” method to combine and use them effectively for better trade timing and accuracy.

Top 3 Technical Indicators (Widely Trusted by Pro Traders)

1. Relative Strength Index (RSI)

• Measures: Momentum → whether a stock is overbought or oversold.

• Key Levels:

  • Above 70 = Overbought (possible reversal down)

  • Below 30 = Oversold (possible reversal up)

2. Moving Average Convergence Divergence (MACD)

• Measures: Trend-following momentum + crossovers

• Signals:

  • MACD line crosses above signal line = Bullish

  • MACD line crosses below signal line = Bearish

3. 200-Day Simple Moving Average (SMA)

• Measures: Long-term trend.

• Use:

  • Price above 200 SMA = bullish bias

  • Price below 200 SMA = bearish bias

Secret Strategy: “TRI-LAYER CONFIRMATION METHOD”

➤ Goal: Combine RSI, MACD, and 200 SMA to filter noise and catch higher probability trades

BUY SETUP

Use when:

1. Price is above 200-day SMA → Long-term trend is UP

2. MACD crossover (MACD line crosses above signal line) → Momentum is shifting bullish

3. RSI is between 40-60 and rising → No extreme but trending strength

Enter long when all 3 conditions align
Target: Nearest resistance or 2x your risk
Stop Loss: Just below recent swing low

SELL SETUP

Use when:

1. Price is below 200-day SMA → Long-term trend is DOWN

2. MACD crossover down → Bearish momentum is increasing

3. RSI is between 40-60 and falling → No extreme but weakening

Enter short when all 3 align
Target: Next support zone
Stop Loss: Just above recent swing high

Bonus Pro Tip: RSI Divergence

Look for bullish divergence (price making new lows but RSI makes higher lows) or bearish divergence (price makes new highs but RSI makes lower highs) to spot early reversals.

Why This Works

This method:

• Filters out false signals

• Aligns momentum + trend

• Keeps your trading rules mechanical and clear

Would you like a template spreadsheet or chart setup guide to apply this strategy in TradingView or other platforms?

best three Technical indicators of Stock market Secret method to use best three indicators.

Understanding Indicators in Technical Analysis