3 indicators to track stock market and trends

Investing in stock and shares without understanding the market dynamics is always risky. There are many investors who lost their hard earned money in hope of making quick wealth through stocks. However there are many experts too who analyse the market trend and make their money talks. It is all about learning the market movement and understanding the market indicators. There are certain market indicators which if use intelligently may prove beneficial for a common investors. I will share 3 stock market indicators.

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If you are tryinng to undersand where the market or a stock is heading these 3 indicator can simplify the work for you ;

9 EMA - Exponential Moving Average.

This indicators helps to identify short term trends of the market. It shows the average price of an asset over the last nine periods i.e minutes, hours, or days by giving more weight to recent prices. To understand in a more layman language :

• When price stay above 9 EMA = bullish momentum

• When price stay below = short term weakness

This indicator is particularly useful for day traders who need to react to fast market changes.

200 EMA

popular technical indicator in financial trading that represents the average price of an asset over the last 200 periods (usually days), with a greater emphasis on recent prices. It is used to identify long-term market trend. The simple rule to understand this is

• Above 200 ema = market is uptrend

• Below 200 ema = long term downtrend

It is widely used to determine the primary or long-term trend of an asset.

ADX - Average Directional Index

It is a technical analysis tool that measures the strength of the trend.

• ADX above 25 indicates strong trend

• ADX below 25 indicates sideways or weak trend

This indicators help traders determine if a breakout is strong enough to continue or if it's a false breakout.

In the nutshell, the simple rule is when price is above both EMAs and ADX is rising = trend confirms gets stronger

Understanding these 3 indicators can help us to filter the noise about the stocks and focus only on direction + strength i.e the two things that trully matters in stock market investment.

In good faith - Peace!!