Technical Indicators Every PSX Trader Should Know
Master RSI, MACD, Bollinger Bands and other essential indicators for timing your trades on the Pakistan Stock Exchange.
Bilal Khan
Senior Market Analyst • Mar 23, 2026
Essential Technical Indicators
Technical analysis uses historical price and volume data to forecast future price movements.
Key Indicators
RSI (Relative Strength Index)
RSI measures momentum on a scale of 0-100:
- Above 70: Overbought (potential sell signal)
- Below 30: Oversold (potential buy signal)
MACD (Moving Average Convergence Divergence)
MACD shows the relationship between two moving averages:
- Signal line crossover — buy/sell signals
- Histogram — momentum strength
Bollinger Bands
Bollinger Bands measure volatility:
- Price near upper band: potentially overbought
- Price near lower band: potentially oversold
- Band squeeze: upcoming volatility breakout
Using Multiple Indicators
Never rely on a single indicator. The most effective approach combines:
- A trend indicator (Moving Averages)
- A momentum indicator (RSI or MACD)
- A volatility indicator (Bollinger Bands)
Conclusion
Mastering these technical indicators will significantly improve your trading decisions on the PSX.
Bilal Khan
Senior Market Analyst
Bilal Khan is a market analyst with over 10 years of experience covering Pakistani equities. Specializing in fundamental analysis and dividend investing strategies.