Technical indicators are mathematical calculations based on the price and/or volume of a security, used to predict future market trends. They are typically displayed as lines or histograms on a price chart and are designed to help traders identify potential buying or selling opportunities in a security.
There are many different types of technical indicators, each with its own calculation method and purpose.
Technical indicators are used in conjunction with other analysis techniques, such as trend analysis and chart pattern recognition, to inform a trader's decision-making process. However, it's important to keep in mind that technical indicators are not foolproof and can sometimes produce false signals. As such, technical analysts typically use a combination of indicators to support their analysis and confirm their trade decisions.