Technical tools read crowd behavior directly from price, volume and volatility. They are strongest when you use them as probability guides rather than absolute promises.
SMA = average of closing prices over N sessions
Simple and exponential moving averages smooth noise so you can see the dominant trend.
Why it mattersWhen price holds above rising averages, buyers are usually controlling the tape. Crossovers often mark a change in trend speed.
Watch out forMoving averages lag. They confirm moves after they start, so sideways markets create false crossovers.
RSI = 100 - 100 / (1 + RS)
Relative Strength Index measures whether recent up moves are dominating recent down moves.
Why it mattersRSI helps traders spot overstretched momentum, failed rebounds and exhaustion near support or resistance.
Watch out forOverbought does not always mean sell, and oversold does not always mean buy. Strong trends can stay stretched for long periods.
MACD = EMA(12) - EMA(26)
MACD tracks the spread between fast and slow exponential averages to measure acceleration in the trend.
Why it mattersA rising MACD above its signal line usually confirms improving momentum. A falling histogram often shows a trend losing force before price fully rolls over.
Watch out forMACD is best as confirmation. In choppy markets it whipsaws quickly.
Bollinger Bands
Intermediate
Middle band +/- 2 standard deviations
Bollinger Bands map a rolling statistical channel around price.
Why it mattersThey help frame mean reversion, breakout compression and volatility expansion.
Watch out forTouching a band is not a signal by itself. Context from trend, RSI and volume still matters.
Support and resistance
Beginner
Support is a zone where buyers previously stepped in. Resistance is a zone where sellers previously took control.
Why it mattersThese levels anchor stop placement, reward-to-risk planning and breakout confirmation.
Watch out forLevels are zones, not exact rupee numbers. False breakouts are common without volume follow-through.
Volume and delivery
Beginner
Volume measures participation. Delivery or block activity hints at whether institutions are behind a move.
Why it mattersA breakout with strong participation is usually more durable than one occurring on thin volume.
Watch out forHigh volume can confirm both breakouts and panic. It tells you conviction exists, not which side will win next.