Indicators use in Delivery trading

Admin
March 03, 2023

Delivery trading, also known as long-term investing, focuses on buying and holding securities for an extended period of time. Here are some useful indicators that can be used in delivery trading:

  1. Price-to-Earnings Ratio (P/E Ratio): P/E Ratio is a valuation ratio that compares a company's stock price to its earnings per share. It can help traders identify whether a stock is overvalued or undervalued relative to its earnings potential.

  2. Price-to-Book Ratio (P/B Ratio): P/B Ratio compares a company's stock price to its book value per share. It can help traders identify whether a stock is overvalued or undervalued relative to its assets.

  3. Dividend Yield: Dividend Yield measures the percentage return on a stock based on its annual dividend payment and current stock price. It can be a useful indicator for income investors looking for steady, long-term returns.

  4. Moving Averages: Moving Averages are a popular trend-following indicator that can help traders identify the direction and strength of a trend. Traders often use two or more moving averages, such as the 50-day and 200-day moving averages, to identify potential buy and sell signals.

  5. Relative Strength Index (RSI): RSI is a momentum oscillator that measures the speed and change of price movements. It can be used to identify overbought or oversold conditions in the market. When RSI is above 70, it suggests that the underlying asset may be overbought, and when RSI is below 30, it suggests that the underlying asset may be oversold.

  6. Moving Average Convergence Divergence (MACD): MACD is a trend-following momentum indicator that shows the relationship between two moving averages. It can help traders identify potential buy and sell signals and can be used to confirm the strength of a trend.

  7. On-Balance Volume (OBV): OBV is a volume-based indicator that measures buying and selling pressure in the market. It can help traders identify potential trend reversals and confirm the strength of a trend.

These indicators can be used alone or in combination with each other to help traders make informed trading decisions in delivery trading. It's important to remember that no single indicator should be relied upon exclusively, and traders should always consider multiple factors before making a trade.