The average trader could only use 2-3 indicators. A combination of candlesticks, volume, Bollinger bands, and chart patterns may be simple enough. Experience to identify what chart patterns are forming is where the learning curve will require several years of chart review.

Below is the S&P500 ( November 2007-December 31, 2008) with 200 day moving average, MA, ( red line ) and 50 day MA (blue line) graphed. Volume confirms the direction is down with a peak in October 2008. The last price on the chart ( December 31,2008)  appears to be moving higher - but the volumes are very low. In this case, we can say no volume signal is provided by the data. The close above the 50 day moving average is one positive. A close above the 200 day MA (red line) would be bullish for the entire market. Any rally at this point could take the S&P500 back to the 1200 range or near the 200 day MA before technical resistance resumes.

Moving Averages (MA), SMA, EMA

The 200 day moving average or 30 week moving average defines the bear of bullish nature of the stock or ETF. On a daily chart, the 10,20,50 day moving averages are indicators of shorter term trends. In our example above we are using a daily chart. On a weekly chart, use the 30 week MA to approximate the 200 day moving average.

Bollinger Bands are one of the most simple indicator overlays on a technical stock chart. Bollinger bands are overlaid on the price. The ( upper, SMA, lower ) bands are defined by the standard deviation from the simple moving average SMA. It is a common default in charting software to use a 20 day SMA.  Many traders use 2.0 standard deviations to capture the majority of the stock's price swings. Often the code used for this indicator is = (20,2.0).

Strategy

Up Trending Stocks

Bollinger bands (20,1.7) allow a trader to quickly tell if a stock is trending. If a stock is in a trend on the upper or lower Bollinger band it is more probable to remain on this trend unless it crosses the 20 day SMA. If the stock is rising and the price (high,low,and close) touches the 1.7 upper bollinger band, it's more probable to remain on the uptrend another day. As the stock moves toward the 20 day SMA ( middle band), the more likely a reversal will occur. A high volume signal is needed to confirm a reversal to lower prices.

Buy signals can be found on the upper Bollinger band. Most break-outs will occur as the price rises on the upper Bollinger band with 2X volumes and closes above old resistance points. Sell only after the price crosses and closes below the 20 day moving average. 

Down trending stocks

A stock in a downtrend will usually display the price action (candlesticks) touching the lower BB ( 20,1.7). After several days of moving lower the stock may become oversold. At this point buyers will move in a the price action will move the stock upward toward the 20 day SMA, away from the lower BB.

A bottom or near term reversal will be more probable in conjunction with a double bottom or reversal chart pattern. When a bottom has formed, the price moves slowly off the lower BB and will cross the 20 day moving average. To confirm the reversal, a 2nd or 3rd day close above the 20 day MA is needed. In many cases, a bear market will have rallies where the stock moves up quickly, touches the 20 day MA, and then heads back down.