Technical Indicators

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How to Use

• Overbought (70+) — Potential reversal or pullback expected.
• Oversold (30-) — Potential bounce or reversal expected.
• Divergence — Price makes new high/low, RSI doesn't = potential reversal.
• Centerline (50) — Above 50 = bullish momentum, below = bearish.

Indian Market Tips

RSI works well on NIFTY and BANKNIFTY 15-min and hourly charts. Combine with price action for best results. Avoid using RSI alone during strong trending markets — it can stay overbought/oversold for extended periods.

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Components

• MACD Line — 12 EMA minus 26 EMA.
• Signal Line — 9 EMA of MACD Line.
• Histogram — Difference between MACD and Signal.

Trading Signals

• Bullish Crossover — MACD crosses above Signal line.
• Bearish Crossover — MACD crosses below Signal line.
• Zero Line Cross — Above zero = bullish bias, below = bearish.

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Components

• Middle Band — 20-period SMA.
• Upper Band — Middle + (2 × Standard Deviation).
• Lower Band — Middle - (2 × Standard Deviation).

Trading Applications

• Squeeze — Bands contract = low volatility, breakout imminent.
• Band Touch — Price touching upper/lower band doesn't mean reversal.
• Walk the Band — Strong trends "walk" along the upper or lower band.

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How It Works

• Green Line Below Price — Bullish trend, line acts as support.
• Red Line Above Price — Bearish trend, line acts as resistance.
• Flip — When price crosses the SuperTrend line = trend reversal signal.

Best Settings for Indian Markets

Default settings (ATR Period: 10, Multiplier: 3) work well for NIFTY and BANKNIFTY. For intraday, use 7,2 or 10,2 settings on 5-15 min charts. For swing trading, use 10,3 on daily charts.