Trading is about identifying the right trend, at the right time and taking the right position. With the help of best stock market indicators like MACD (Moving Averages Convergence & Divergence), RSI (Relative Strength Index), ADX (Average Directional Index) and more, traders can easily identify these trends and can make more calculated decisions.
In this blog, you will learn about finding the trending stock with a buy signal using technical indicators in 2025.
List Of Top 7 Technical Indicators
Here is the list of some of the best technical indicators that you can use in 2025:
1. On-Balance Volume
Traders use stock market indicators like OBV, or On-Balance Volume, to measure the positive and negative security trends over time. If the OBV is rising, it means the buying pressure is building up on the security, and if it is falling, this means that selling pressure is building up on the security.
It can be used as a strong indicator for analysing the trend’s strength.
For instance, XYZ Ltd. is a stock riding a bull trend, but its OBV trends lower, which indicates that the investors or traders do not strongly back the bullish trend, which could soon become a bearish trend.
Vice versa in case of a bearish trend.
If the prices are falling but the OBV is rising, it indicates that investors are investing their money in the stock, and the trend can soon become bullish.
2. MACD
Another one of the best stock market indicators for analysing the performance of trends and their momentum is MACD. This technical indicator is used by traders to study the direction and momentum of the stock; further, it is a good indicator of trading signals.
If the MACD is trailing above the zero mark, it means that the prices are in the bullish phase; on the contrary, if the MACD is falling below zero, it indicates that the prices are in the downtrend. Moreover, MACD is the best stock market indicator for studying trend reversals, and traders often use it to develop strategies based on trend reversals.
3. RSI
RSI is another stock market indicator used for timing the market and devising buy-or-sell strategies accordingly. This technical indicator moves between zero and 100 and is known for its accuracy in identifying overbought or oversold securities.
If the RSI is below 30, it means that the security is oversold, and if it is above 70, it indicates that the security is currently overbought in the market.
4. ADX
One common mistake every trader makes is trading in a trend, even where there is no trend, i.e, either a weak trend or a false one. ADX or Average Directional Index is one of the best stock market indicators that can be used for analysing the strength of a trend.
An ADX reading above 40 indicates a strong trend, while an ADX 20 or below suggests a weak trend. You use this indicator to avoid making trades when the market situation is unfavourable.
5. Accumulation/Distribution Line
As the name indicates, the Accumulation/Distribution Line is a stock market indicator used to study volume and assess stock prices. It can be quite handy for the trader for identifying and analysing the subtle shifts in the buying and selling pressure that aren’t easily visible on the charts.
6. Bollinger Bands
Bollinger Bands are one of the most commonly used stock market indicators for gauging a stock’s price and volatility. When the market is highly volatile, the bands widen, and if it is low, they contract.
As we discussed about RSI, the same is how to use Bollinger bands; if the stock prices touch a lower band of the Bollinger band, it is a buy signal; conversely, if it touches the upper band, it is a sell signal.
7. Parabolic SAR
Parabolic SAR ((Parabolic Stop and Reverse) is one stock market indicator that is not known to many traders but can reap multifold returns if used correctly. This indicator is a strong choice for people looking for tools to assess the stock’s momentum and potential reversal points.
Parabolic SAR is used in trending markets to set the stop-loss order and will also help you to stay longer in profitable trades.
Final Thoughts
The world of trading is inherently dynamic and often unpredictable, with market conditions shifting rapidly due to a variety of economic, political, and psychological factors. While this volatility can be intimidating, it also presents opportunities for well-prepared investors.
You can significantly improve your market timing and make more informed decisions by equipping yourself with the right tools, such as the best stock market indicators, up-to-date market data, and a solid understanding of trading strategies. Remember, consistency, discipline, and continuous learning are key to navigating the ups and downs of the trading landscape successfully.