Top 6 Technical Indicators for NEPSE
1. RSI (Relative Strength Index)
RSI is the single most useful momentum indicator for NEPSE. It identifies overbought (above 70) and oversold (below 30) conditions. Current market average: 61.7. Top RSI readings: KBL (81.6), SHIVM (77.9), BHL (77.8), NHPC (76.6).
2. Moving Averages (SMA/EMA)
The 20, 50, and 200-day moving averages define trend direction. When shorter MAs are above longer ones, the trend is bullish. Currently, 15 stocks show golden cross (50 above 200 MA). LEC leads with a composite score of 76.3 on golden cross.
3. MACD
MACD identifies trend changes through crossovers. Bullish crossovers currently in NBLD85 and AKJCL signal fresh buying opportunities.
4. Bollinger Bands
Bollinger Bands measure volatility. When bands squeeze tight, a big move is coming. Currently 3 stocks show BB squeeze: NICGF, PBD88, and SBID83. Watch these for imminent breakouts.
5. ADX (Average Directional Index)
ADX measures trend strength. Values above 25 indicate strong trend. Top ADX readings: NHPC (54.4), AKJCL (53.0), API (47.5), KBL (44.8) - all showing very strong trends.
6. Volume Ratio
Volume ratio compares current volume to 20-day average. Ratios above 2 signal unusual interest. Top: C30MF (12.7x), NBLD85 (9.7x), NICBF (7.1x).
Which Indicator Combination Works Best?
Our composite scoring system weighs all indicators. The top-ranked stocks combine multiple bullish signals: SHIVM (score: 79.9) shows strong uptrend across RSI, MA alignment, volume, and momentum.