Many people who participate in ordinary online securities activity suffer from information overload. This condition typically arises when your trading platform offers a hundred or more technical indicators that all claim to be the next wonder of the world.

The problem is that too much data can drown you in a sea of indecision and make trading more difficult, not easier. What's a trader to do? The answer for many lies in choosing just two or three indicators and sticking with them until you get a feel for how they operate in real-world conditions. Here are some of the most common ones that experienced investors use with confidence. Consider trying each one out on a simulator to understand how to read the information they provide.

SMAs

Without a doubt, moving averages are the most frequently used tool for investors of all experience levels. There's just something about averages that's easy to understand and takes a lot of the mystery out of looking at a raw price chart. SMAs, or simple moving averages, are just that, a mathematical average of a set number of daily price closings. You can choose to view any average you wish, but 50-day and 200-day lines are already traced onto most charts. The most basic rule is when the 50-day moving average crosses above the 200-day line, that is said to portend an upswing in price.

Relative Volume

RVol, or relative volume, is a handy, intuitive indicator that reveals a lot. The reason many love it is because it doesn’t rely on price, but on volume of shares traded within a given time period. Then, the indicator gives a value that shows how the current volume compares to an average volume. Combined with moving averages, the RVol can uncover all sorts of interesting information about a security.

You can use relative volume to predict home run trades. If you’re looking for more information on the topic, YouTube is a great resource. There are plenty of videos that will show you how to transform your skills with this simple technique. Volume changes, compared to typical numbers, can show that traders are scrambling to buy up any additional supply of the security. Likewise, when RVol values are quite low, that could be a sign that no one wants to acquire the shares, for whatever reason.

EVAs

Exponential moving averages take the concept of the SMA one step beyond. What the EVA does is weigh the most recent pricing data more heavily. That single change in the equation means you get a more accurate picture of what's happening from day to day, and minute to minute. This same method is used in many disciplines, particularly in sports ratings when teams' recent wins are given more importance in relative rankings than victories that happened many months ago. The thinking is that recent performance is a better gauge of ability than something that took place long ago.