Indicator

Technical indicators are mathematical calculations that traders use to forecast future price movements and identify trading opportunities. They fall into several categories: trend indicators (moving averages, MACD), momentum indicators (RSI, Stochastic), volatility indicators (Bollinger Bands, ATR), and volume indicators (OBV, Volume Profile). Indicators can be leading (predict future movement) or lagging (confirm trends). While powerful, indicators should not be used in isolation but rather in combination with price action and other forms of analysis. Over-reliance on indicators without understanding their limitations can lead to poor trading decisions.