Today, Vedanta made a bumpy start, down over 3 percent, even as the company was added to the benchmark Sensex with effect from June 18.

The scrip was trading 3.02 percent lower at Rs 231.55 at around 9.41 am. The Sensex slipped 51 points, or 0.14 percent, at 35,571 at around the same time. As a part of the reshuffle, Vedanta replaced Dr. Reddy’s Laboratories in the Sensex pack.

Trading is buying and selling of stocks, only if, the stock is listed on an exchange. To buy and sell these stocks traders apply different strategies and indicators to close the deal in benefit. To predict the market, you must know how to use technical indicators like a pro. There are different types of indicators used in the technical analysis. Traders use different ways to trade. Traders and technical analysts not only apply single strategy to study but also combine two strategies in order to get the best study results. Buy and sell signal initiator uses Bollinger band and RSI act as a confirmation. Bollinger Bands is a technical analysis tool invented by John Bollinger in the 1980s. Bollinger Bands are one of the most common volatility indicators used by analysts in the technical stock market analysis.

The bands plot three separate lines on a price chart, with the outer two representing a two-standard-deviation range from a centerline calculated using a moving average. Because the standard deviations widen or narrow dynamically based on the security’s trading range, Bollinger Bands are a bendable and adaptable tool. Analysts frequently combine Bollinger Bands with an additional renowned indicator, the Relative Strength Index, or RSI, to confirm a trend’s relative strength. This indicator is used to compare the number of days a security closes up and closes down over a period. It is a momentum indicator. On a series from zero to 100, these values are plotted.  When the RSI returns a value over 70 then over-bought securities are expected. Similarly when the value is fewer than 30 then oversold securities are expected. The RSI acts to support or dismiss possible price trends when the two strategies are combined.

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