Most stock market traders have a favorite technical indicator.

The one that they have the most confidence in. The one that, from experience, they trust the most. Or the one that they always look at first.

For some it is the RSI. Others like the Stochastic or the MACD . Or one of the literally hundreds of other indicators that are available.

Well, I love the MACD. And the Stochastic is also a favorite.

But there is one indicator that I refer to more often than any other. However, before I tell you what it is, it is important that this discussion is placed in context.

I always stress with the traders that I mentor that the most important part of your analysis is price action.

By this I mean that the very first thing you should look at is the shape of the stock