One shoe size fits all

I am a lazy fellow. So here is one general concept that could fit with most indicators. However, do be aware that since I am generalising here, there are some that may work on certain indicators, and some don't.

Ok, let's get technical :)
Sample chart here is KLCI.
Sample indicator here is RSI.

There are few methods to do it.
1. Fixed Numbers
For different indicators, it would be different numbers but the concept is the same.
For RSI, the recommended is 30 oversold and 70 for overbought
The idea is of contrarion. Buy when market is selling. Sell when market is buying.

So, Buy signal when oversold condition seen.


Sell when overbought condition seen.



2. Trendline
For price action, many draw trendlines. For Indicators, we could also do the same.
The whole idea is the same:

When resistance is broken, buy.


When support is broken, sell.



3. Midline
For some indicators, the midline is zero.
For RSI, the midline is 50.
The idea about this is continuation and also the concept of support and resistance.
50 is the middle ground. So it should be the contention of the bulls and the bears.

When crossover upwards, its a buy signal.


When crossover downwards, its a sell signal.



4. Divergences
Basically the idea of divergences is that when the indicator does not move in line with the price. The idea is that accumulation or distribution may be at work and the price does not show it. Hence, the hidden power of indicators.

Buy when positive divergence is seen.
Positive divergence means that Price goes down or neutral but the indicator shows uptrend.


Sell when negative divergence is seen.
Negative divergence means that Price goes up or neutral but the indicator shows downtrend.



5. Crossover
Basically here we will be using Moving Averages as our sample indicator.
Lets use the popular Exponential Moving Average (EMA) 50 days and 20 days
Basically the idea is simple. When the EMA of shorter period crosses the EMA longer period its a signal.

Buy when crosses up. This is also known as the Golden Cross.


Sell when crosses down. This is also known as the Dead Cross.


Legends:
EMA 50 - Purple Line
EMA 20 - Orange Line


Disclaimer: While the charts may look wonderful, as if all the signals work, in reality it does not. It look fantastic because I made it look so. I only show you the ones that work, too lazy to upload more charts that show how it does not work. Parameters/settings of the indicator also come into play. As I do not use RSI, I could not advise you the settings :P. Self analysis is strongly advised. Best to fit to own trading strategy/trading style.