Must-Have Indicators for Traders (RSI, MACD, Supertrend, MAs)

With hundreds of indicators available on TradingView, it’s easy to feel lost. But most traders, especially beginners, don’t need more than a few reliable tools.

In this chapter, we’ll focus on four indicators that are popular, practical, and beginner-friendly:

• RSI (Relative Strength Index)
• MACD (Moving Average Convergence Divergence)
• Supertrend
• Moving Averages (MA/EMA)

Let’s break them down one by one.

1. RSI – Relative Strength Index

What it does:
RSI tells you if a stock is overbought (too expensive) or oversold (too cheap) based on recent price movement. It’s measured on a scale of 0 to 100.

• Above 70 → Overbought (price may fall)
• Below 30 → Oversold (price may rise)

Example:
If Titan’s RSI is above 70, it might be time to wait instead of buying. If it’s below 30, it might be nearing a bounce.

Best for:
Timing entries and exits.

2. MACD – Moving Average Convergence Divergence

What it does:
MACD compares two moving averages (a fast one and a slow one) to show changes in momentum. It helps you spot trend reversals or confirm ongoing trends.

• When the MACD line crosses above the signal line → Bullish signal
• When it crosses below → Bearish signal

Example:
You’re watching Infosys. If MACD gives a bullish crossover and price is breaking out, it adds confidence to your buy decision. Best for:
Spotting momentum shifts and confirming trends.

3. Supertrend

What it does:

Supertrend is a trend-following indicator that shows whether a stock is in an uptrend or downtrend. It appears directly on the chart as a green or red line.

• Green line below price = Uptrend
• Red line above price = Downtrend

Example:
Let’s say Supertrend just turned green on SBI’s daily chart. That could mean the downtrend is over, and a fresh uptrend may be starting.

Best for:
Clear visual trend signals; simple buy/sell cues.

4. Moving Averages (Simple & Exponential)

What it does:
A moving average smooths out price data over a certain period. The most commonly used are:

• Simple Moving Average (SMA) – slower, stable
• Exponential Moving Average (EMA) – faster, reacts quickly.

Popular settings:

• 50 EMA / 200 EMA – used for trend direction.
• 9 EMA / 21 EMA – used for short-term trades.

Example:
If the price is above the 50 EMA, it may signal strength. If it crosses below the 200 EMA, it could be a sign of weakness.

Best for:
Understanding trend direction and key support/resistance levels.

Quick Comparison Table

How Many Should You Use?

Start with 2 to 3 max. For example:

• Combine Moving Averages (for trend) with RSI (for entry)
• Use MACD for confirmation.
• Or use Supertrend alone if you want simplicity.

More indicators ≠ better results. Focus on clarity, not clutter.