Trading indicators are parameters and signals used in technical analysis that identify potential entry and exit points for traders. They give traders information about how prices change, which helps them make smart decisions. Many investors choose to use trading indicators as they provide a comprehensive view of market trends and conditions.
The most popular trading indicators include moving averages, which indicate the average price movement over a given period, oscillators, which measure the momentum of an asset’s price; and trend lines, which show the direction of an asset’s trend or its support and resistance levels. Other indicators include volume-based indicators such as Bollinger Bands and MACD (moving average convergence and divergence). Additionally, some traders utilize sentiment indicators such as the Relative Strength Index (RSI) or Coppock Curve to gain insight into trader sentiment.