Technical Indicator
Tool calculated from market data to support trading decisions.
Beginner-friendly explanation
A technical indicator helps decide whether to buy or sell. It’s calculated from price data (e.g., average, strength, speed…).
Example:
The RSI shows if an asset is “too expensive” (overbought) or “too cheap” (oversold).
Intermediate-level insight
Technical indicators can be trend-based (MACD, moving averages), momentum-based (RSI, Stochastic), volume-based (OBV), or volatility-based (ATR, Bollinger).
Example:
A trader uses the crossover of two moving averages to confirm a market entry.
Advanced perspective
Technical indicators enable automated or semi-automated signal generation. Some are derived (oscillators), others advanced (Market Profile, dynamic VWAP, etc.). Their effectiveness depends on context.
Example:
An algorithm combines RSI, ADX, and a volume filter to trigger trades at breakout zones.
Technical & Chart Analysis
indicator, signal, RSI, MACD, OBV, ATR, moving average, trend, momentum, oscillator