Indicators: EMA, VWAP, RSI, MACD and Supertrend
How the five indicators on ExpertView are calculated, what they measure and how traders read them.
1. Moving averages (EMA 9, 21, 50, 200)
A moving average smooths price over a number of candles. The exponential moving average (EMA) gives more weight to recent candles, so it reacts faster than a simple average.
- Short EMAs (9, 21) follow price closely and show short-term direction.
- Longer EMAs (50, 200) show the broader trend. Price above a rising 200 EMA on the daily chart is a common definition of a long-term uptrend.
- Crossovers: EMA 9 crossing above EMA 21 shows short-term momentum turning up; crossing below shows it turning down.
Moving averages lag by design. In a sideways market, crossovers flip back and forth and give many false signals.
2. VWAP: the intraday fair price
VWAP (volume-weighted average price) is the average price of the day, weighted by how much traded at each price. It resets every session.
Large institutions often measure their execution against VWAP, so it acts as an intraday reference. Price holding above VWAP shows buyers in control of the session; below shows sellers.
VWAP is most useful intraday. Its meaning fades on multi-day charts because it restarts each morning.
3. RSI: momentum on a 0 to 100 scale
The Relative Strength Index compares the size of recent up moves with recent down moves over 14 candles and scales the result from 0 to 100.
- Above 70 is traditionally called overbought; below 30, oversold.
- In strong trends RSI can stay overbought or oversold for a long time. In uptrends it often holds above 40; in downtrends below 60.
- Divergence: price makes a new high but RSI does not. Momentum is fading, though that alone does not mean price will fall.
4. MACD: trend and momentum together
MACD is the gap between the 12-period and 26-period EMAs. A 9-period EMA of MACD is the signal line, and the gap between them is the histogram.
MACD crossing above the signal line shows momentum turning up; crossing below shows it turning down. A shrinking histogram shows momentum fading before the cross happens.
MACD is a derived EMA, so it lags even more than the EMAs it comes from. It is better at confirming a trend than at calling turns.
5. Supertrend and combining indicators
Supertrend draws a line a multiple of the Average True Range (ATR) away from price. When price closes beyond the line, it flips sides. Traders use it as a trend filter and a trailing stop.
Indicators measure the same price data in different ways, so stacking many of them rarely adds new information. A sensible combination covers different questions:
- Trend: EMA 50/200 or Supertrend
- Intraday location: price vs VWAP
- Momentum: RSI or MACD
- Context: support, resistance and volume
ExpertView shows each of these readings as plain facts, for example "Price 0.2% above VWAP" or "RSI 58". They describe current conditions; they are not buy or sell calls.
Key takeaways
- EMAs show direction; crossovers show changes in short-term momentum but whipsaw in ranges.
- VWAP is the intraday fair-value reference and resets every session.
- RSI and MACD measure momentum; divergences warn but do not predict.
- Combine indicators that answer different questions instead of stacking similar ones.
Try it on ExpertView: Toggle EMA, VWAP, Bollinger, Supertrend, RSI and MACD on a live chart →
From ExpertView's free courses at expertview.in/learn. For study and educational use. Not investment advice. Rules, lot sizes, taxes and timings change; check the latest from NSE, MCX, SEBI and the Income Tax Department.