In present times, more and more people have started investing in the stock market. Investing in the stock market is what most people are looking forward to so as to get financial profits. But keeping a close eye on the stock market trends is not everyone’s cup of tea, especially for a person who doesn’t have much experience in the field.

So, for understanding the latest stock market trends, there are some tools for technical analysis. These tools help investors in understanding the highs and lows of the stock market trends and make things easier for them.

But, considering its 21st century, there are a large number of tools available for solving the purpose and it is very tricky to choose the right one too. There are some tools that are comparatively easier to understand in regards to others. The points to be kept in mind while choosing these tools are professional scalability, cleanliness, and the tool must be easy to understand and use. Here, we will discuss the top 5 technical analysis tools for the stock market:

  • Stock Charts

You need to understand that the most important factor while choosing the technical analysis tool is cleanliness and therefore Stock Charts tops the list here. This tool is very easy to use and has a clean interface.

It is possible to save the charts to the user’s account and can be used for future reference anytime. Stock Charts offers a wide range of free tools that can be easily used by investors to analyze the trade with much less complexity. These tools help in streamlining the research, strengthening the analysis, and an improved portfolio monitoring.

  • SMA (Simple Moving Average)

The main indicator in technical analysis is the moving averages. Simple Moving Average is a tool that is capable of providing an average of as many days one wants (usually it is 25, 50, or 200 days) and that too on daily basis.

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This tool can be very helpful for people who are new to using tools for the technical analysis of the stock market. It is very simple, as when SMA goes up, the trend goes up and if SMA goes down, the trend goes down. So, it is easier for the investors if they use Simple Moving Average while choosing to buy or sell stocks.

  • MACD (Moving Average Convergence and Divergence)

The Moving Average Convergence and Divergence is a tool used by various investors to know about the direction as well as the momentum of the trend in the stock market. MACD is also helpful in providing the trade signals. It is somewhat similar to the Simple Moving Average tool and it can be very helpful in analyzing when to sell or buy stocks.

Two MACD lines diverge when a strong trend comes and MACD above zero is said to be bullish whereas below zero is said to be bearish. But, this tool is not useful in finding out the overbought or oversold conditions.

  • RSI (Relative Strength Index)

Relative Strength Index is basically a momentum indicator and is used to measure the magnitude of the price changes occurring in the stock market. This is very useful if you are capable of doing complex calculations. This tool helps to do an analysis between the gains and losses and based on this analysis, the chart is then created.

Whenever the value of RSI rises above a specific point, it can be concluded that the stock values are attaining maximum profits and the profits are outnumbering the losses as well on the daily basis. The Relative Strength Index is h helpful in even detecting the stock movements that can’t be read in a bar chart. And, it also depicts the region when the stock was last overbought or oversold.

  • Aroon Oscillator

This is a tool that indicates whether a security is in trend or not and if over the calculation period, the prices have been reaching highs or hitting lows. Also, Aroon Oscillator is an indicator that can be used to get information about a trend that might make a place in the stock market in near future.

The Aroon Oscillator basically has two lines, namely the Aroon-up and Aroon-down lines. A sign of trend change is when the Aroon-up line crossed the Aroon-down line. An uptrend is said to come when the Aroon-down line stays near zero while the Aroon-up line stays around 100. And, if the Aroon-down line is near 100 and crosses the Aroon-up line, it is an indication of a downtrend.


These tools are beneficial for traders and investors as these tools help them to gain optimum profits from the stocks. The only thing to be kept in mind while using these tools is that the right set of features must be used according to the analysis that is being made. Try out the tools and pick the ones that suit you the best.

At Mahadevan Share Sense, we understand that trading can be a complex and daunting endeavor. That's why our mission is to empower traders with the knowledge, tools, and strategies they need to make informed decisions and maximize their profits. Our training programs cover a wide range of topics, including technical analysis, fundamental analysis, risk management, trading psychology, and more. We believe in a holistic approach to trading education, combining theoretical knowledge with practical exercises and real-time market simulations.
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