We are about to look at a few major indicators that can be used during technical analysis by traders. Each indicator is suitable for different situations, so you need to know which work best under different conditions and base your choice of indicator on your specific needs. Some, like MA and MACD, work best in trending markets, while others such as the RSI are good for identifying trend turning points.
Before choosing an indicator, you should first identify the market environment. The market can be in a range, in a trend, or trading sideways with no clear direction. Once you have completed this quick analysis, you are ready to choose the best indicator for your needs. A common mistake beginners make is applying the same three or four indicators during all market environments. This tends to produce conflicting signals and makes it hard to correctly identify good entry and exit points.