Technical signals look only at a share’s past prices. They describe the trend; they say nothing about the business itself.
The common ones
- Moving averages (50, 100, 200 days): the average price over that many trading days. A price above its 200-day average is in a long-term uptrend; when the 50-day crosses above the 200-day it is called a “golden cross”, and below, a “death cross”.
- RSI: compares recent rises with recent falls on a scale of 0 to 100. Above 70 is often called overbought, below 30 oversold.
- MACD: compares a short and a long average to show whether momentum is building or fading.
- Supertrend: a line that follows the price at a distance based on how much it usually moves. A close above it is read as a buy signal, below it as a sell signal.
Their limits
- They lag: they confirm a move after it has started.
- They give many false signals, especially when prices move sideways.
- Different settings give different answers.
- A strong trend in a weak business can reverse suddenly.
Use them, if at all, alongside the company’s fundamentals and your own goals, never on their own.
How i-wise helps
Stock Health’s Technical Signals tab shows the price chart with 50, 100 and 200-day averages and grades seven common signals Bullish, Neutral or Bearish, each with its rule written out. See Stock Health.
General information for education, not investment, tax or financial advice. Rules, rates and limits change: check the official sources before acting, and consider a SEBI-registered investment adviser for advice on your own situation.