Recently, someone asked me how to get started with stock investing, and it reminded me that I was once completely confused by all kinds of indicators. Actually, many people overestimate the difficulty of technical analysis; as long as you master a few core indicators, you can have a basic judgment of the market.

Let me first explain why we look at indicators. Stock investing is essentially about judging trends, finding turning points, and deciding entry and exit points. Fundamentals tell you whether a company is worth investing in, but technical indicators help you find more precise buy and sell points. Combining these two is the complete investment strategy.

There are countless indicators on the market, but fundamentally, they fall into three main categories. Trend indicators like Bollinger Bands and moving averages are mainly used to determine whether the market is rising or falling. Oscillator indicators like RSI, MACD, and KD are used to find highs, lows, and turning points. Volume indicators show the market’s activity level.

Speaking of the most practical, I still recommend starting with moving averages. This indicator is straightforward—it's just the average of closing prices over the past N days. The 5-day moving average reacts quickly, while the 60-day shows the overall trend. When the price is above the moving average, it’s bullish; below, it’s bearish. Many people can make decent trades just using this indicator combined with candlestick patterns.

I also frequently use the RSI indicator, especially to judge overbought and oversold conditions. This indicator’s value ranges from 0 to 100; above 70 suggests a potential decline, below 30 indicates a possible rebound. I use it to confirm entry and exit points, and it works even better when combined with golden cross and death cross signals.

MACD is my tool for spotting trend reversals. It consists of a fast line and a slow line; when the fast line crosses the slow line, it’s a crossover signal. A golden cross occurs when the fast line crosses upward, usually indicating a rise; the opposite is a death cross, signaling a decline. The color change in the histogram is also important—positive to negative or vice versa indicates a change in momentum.

KD indicator is somewhat similar to MACD, but it focuses more on identifying highs and lows. K-line is the fast line, D-line is the slow line; a K value above 80 is considered overbought, below 20 oversold. Seeing a golden cross in the oversold zone is a good buy signal, while a death cross in the overbought zone suggests considering reducing positions.

My experience is that you should never rely on just one indicator. Technical indicators all have lag, and during market volatility, their parameters may also fail. The best approach is to verify with multiple indicators and combine them with fundamental information; this makes your judgment more accurate.

I also look at Bollinger Bands, Williams %R, and CCI, but not always every time. The key is to find an indicator combination that suits your trading style. Short-term traders may prefer indicators that respond quickly, while long-term investors focus on longer-cycle moving averages.

Honestly, indicators are just tools; the key is to understand the market logic behind them. Only by understanding why a signal appears can you truly use indicators effectively. Beginners don’t need to learn all indicators at once; mastering moving averages, RSI, and MACD is enough to handle most situations.