What is a technical indicator?

In technical analysis, a technical indicator is mathematically derived from price, trading volume, investor sentiments, or open interest data and applied to interpret stock market trends and investment decisions using past price and volume trends. Technical analysts use technical indicators to determine market entry and exit points.

What technical indicators are used to predict future price movements?

Technical indicators offered in technical analysis to predict future price movements include cycle volumes, momentum readings, volume patterns, price trends, Bollinger Bands, moving average, Elliot waves, oscillators, and sentiment indicators.

What are indicators used for in trading?

Metrics, such as trading volume, provide clues as to whether a price move will continue. In this way, indicators can be used to generate buy and sell signals. You don't need to use all of them, rather pick a few that you find helpful in making better trading decisions.

What does A MACD indicator mean?

The indicator is composed of two lines: the MACD line and a signal line, which moves slower. When MACD crosses below the signal line, it indicates that the price is falling. When the MACD line crosses above the signal line, the price is rising.