Technical Indicators are man made indicators but not a decision maker.
Confirm the TA using the charts that we studied so far. TA is widely followed but this must precede a good understanding of Demand & Supply.
Moving Average shows a smoothed out curve of the trend usually seen over a 21 days period, indicating a month’s trade.
Good to use during a trending phase and may not work during side ways movement but it is difficult to distinguish the sideways movement from a trend.
MA works like a magnet; the concept of equilibrium shares the concept of magnet. As long as the trend is above the MA line, it is +ve and as long it is below the MA line, it is -ve.
RSI Works exceptionally well when the trend moves sideways, a non-trending phase.
Find the 30 & 70 marks point
70 indicates strength but when it crosses 70, it reflects a over bought situation; hence sell at 70 mark.
30 indicates weakness but when it cross 30 and goes below, sell at 30 and buy if it crosses 30 above showing a positive trend.