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In today’s fast-paced trading environment, mastering the right indicators can be the difference between consistent profits and constant losses. Nepal’s most trusted market educator and analyst, Sandeep Kumar Chaudhary, believes that while price action forms the foundation of technical trading, understanding the core trading indicators is equally essential to confirm market trends and avoid emotional decisions. Through his years of experience in NEPSE and global markets, he has identified the Top 10 indicators every trader must master to trade with clarity, confidence, and consistency.
Moving Average (MA) –
The most classic and reliable tool for identifying the direction of the trend. Sandeep teaches both Simple Moving Average (SMA) and Exponential Moving Average (EMA) to help traders filter out noise and find clear trend momentum.
Relative Strength Index (RSI) –
RSI measures market strength and momentum. Mr. Chaudhary emphasizes using it to identify overbought and oversold zones (above 70 and below 30) and combine it with price action for high-probability entries.
Moving Average Convergence Divergence (MACD) –
A powerful momentum indicator that shows trend reversals and divergence. Sandeep teaches how to interpret MACD crossovers and histogram movements to anticipate strong directional changes in NEPSE stocks.
Bollinger Bands –
This indicator helps traders understand volatility and identify potential breakouts. Mr. Chaudhary explains how to use the “band squeeze” method to detect major price explosions before they happen.
Volume Profile / Volume Indicator –
Volume reveals market participation. Sandeep highlights that studying volume spikes during accumulation or distribution phases exposes where “smart money” is active.
Stochastic Oscillator –
Useful for timing entries during corrections, this indicator helps confirm short-term reversals. Sandeep blends it with Fibonacci retracement for precision.
Average True Range (ATR) –
A crucial tool for risk management. Mr. Chaudhary teaches traders how to use ATR to calculate stop-loss and position sizing accurately.
Fibonacci Retracement Tool –
Not a traditional indicator, but an essential analytical tool. Sandeep uses it to find price pullbacks within trending markets and identify areas of institutional re-entry.
Ichimoku Cloud –
For advanced traders, this Japanese indicator offers a complete picture of trend direction, momentum, and potential reversals. Sandeep encourages traders to understand its cloud behavior rather than just color signals.
VWAP (Volume Weighted Average Price) –
One of the most powerful tools in intraday trading. Sandeep uses VWAP to track institutional buying and selling pressure, guiding traders toward balanced entry zones.
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