Top 5 Indicators Our AI Uses to Predict Stock Movement

Posted July 5, 2025 by Logan

At ModexIQ, our AI-driven stock prediction system combines proven technical indicators to analyze market behavior and generate reliable short-term forecasts. Here's a detailed look at the top five indicators that power our models:

  1. RSI (Relative Strength Index): The RSI measures the speed and change of price movements to identify overbought or oversold conditions. When RSI is high (typically above 70), a stock may be overbought and due for a correction; when low (below 30), it may be oversold and ready for a rebound. This helps the AI detect potential reversal points.
  2. MACD (Moving Average Convergence Divergence): MACD tracks momentum by comparing short-term and long-term moving averages. Crossovers and divergences in MACD signals indicate shifts in momentum, allowing our AI to spot early trend changes before they become obvious in price alone.
  3. SMA 50 & SMA 200 (Simple Moving Averages): These moving averages help identify overall trend direction and strength. The 50-day SMA reflects intermediate trends, while the 200-day SMA shows long-term trends. The relationship between them, such as “golden crosses” or “death crosses,” signals bullish or bearish shifts that our AI factors in.
  4. Bollinger Bands: Bollinger Bands measure price volatility by plotting bands two standard deviations above and below a moving average. When prices approach the bands, it signals potential breakouts or reversals. Our AI uses these bands to understand market volatility and anticipate significant price moves.
  5. Volume Spikes: Sudden increases in trading volume often confirm the strength of a price move or trend. Our AI monitors volume spikes to validate signals from other indicators and avoid false positives, ensuring predictions are grounded in actual market activity.

By integrating these indicators into our training process, ModexIQ's AI gains a multi-dimensional understanding of stock behavior — leading to smarter, faster, and more confident prediction signals for our users.

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