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Investment
Technical Indicator
A mathematical calculation based on price, volume, or open interest used to predict future market moves.
Common technical indicators include Moving Averages, MACD, Bollinger Bands, and Stochastic Oscillator. No single indicator is perfect, so experienced traders combine several and always consider the overall trend and volume.
It's like a speedometer, fuel gauge, and weather radar all combined on your trading dashboard.
Real world: The Relative Strength Index (RSI) is a popular technical indicator. When it goes above 70 the market is considered overbought; below 30 it is oversold. Traders use it to time entries and exits.
💡 Technical indicators turn raw price charts into useful signals.