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Which all indicators to look for before investing in a stock

Hi,

I'm getting more and more interested in understanding charts and indicators. I generally buy and keep shares for long time. As a beginner i would like to know that which are the 4-5 most important indicators which i should look into before investing. Currently i'm learning about MACD, stochastics, williams %R and RSI. Is these sufficient??
If based on signals from these indicators i feel there is a earning oppurtunity in a stock, should i go ahead or any other indicator need to be looked into?
Your expert comment will help me a lot.

Thanks
Vishal
Posted by Vishalkapoor Posted on : 03-Jun-2014

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Answer to this Question By Community
Posted by Admin
Posted on: 03-Jun-2014
Hi Vishal,
I completely agree that once you start looking into the stocks you get more and more interested in it and also like clarity in you about investment duration.

All the indicators you are looking for are very powerful one and upon expertise on them and with definitive plan, one can make consistent profits by using them.

However, i see majority of them fall into momentum indicator and especially Stochastic and Williams are very volatile indicator and to me they are better suited for short term swing trading. You could however use them when you change the interval to weekly charts and weekly indicators. For daily charts, i suggest you use long term indicators like 100 MA, 200 DMA/EMA, MACD, RSI, Trend line, Long term pattern, we do list patterns in terms of duration.
Thanks
Site Admin

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