Technical indicators are ready made analysis tools that support decision making in the trade. They must be used in conjunction with demand-supply and other analysis methods.
Two most fundamental and widely used indicators are MA and RSI.
MA works best in trending market and displays a smoothened out trend of the stock. The stock invariably gets attracted to the MA and is repelled causing the zig-zag movement of the stock. While the stock is above MA it’s considered in uptrend and when it moves below MA it’s considered in downtrend. The MA is not suitable for sideways moving stocks.
RSI works best in the sideways moving market. The RSI can be used to identify overbought and oversold conditions to take appropriate position. RSI is a oscillating indicator and does not work in a trending market.