TrendSignal

Understanding Technical Indicators

Learn about the most common tools traders use to analyze market movements.

What are Technical Indicators?

Technical indicators are heuristic or pattern-based signals produced by the price, volume, and/or open interest of a security or contract. Traders use these indicators to predict future price movements.

They fall into several categories, including trend, momentum, volatility, and volume indicators. It's important to use them in combination rather than relying on a single one.