Use technical indicators with a lot of caution and in combination with other tools.

Technical indicators represent a statistical approach to technical analysis as opposed to a subjective approach. By looking at money flow, trends, volatility, and momentum, they provide a secondary measure to actual price movements. They are best used as an additional tool in collaboration with other tools of technical analysis. Moving average is the average price of a stock over time. It help us to recognize changes in the trend. A rising moving average indicates that the security is in an uptrend, while a declining moving average indicates that it is in a downtrend. It is more useful in a trending market than in a range bound market. RSI is a momentum indicator and is also called a leading indicator as it is useful in a range bound trading market. It has two horizontal lines indicating 70 at top and 30 at bottom.This indicator works well with in this zone 30 to 70. Price movement above 70 shows OVER BOUGHT area and price movement below 30 shows OVER SOLD area.