Technical analysis is a method of evaluating securities based on statistical trends and patterns in historical market data. There are several indicators used in technical analysis that traders rely on to make informed trading decisions. Moving averages, relative strength index (RSI), and Bollinger Bands are among the most commonly used indicators. Moving averages are used to identify trends in the market by calculating the average price of a security over a specific period of time. The RSI is used to identify overbought or oversold conditions, indicating a potential reversal in the market. Bollinger Bands are used to identify the volatility of a security by measuring the standard deviation of price movements from a moving average. Other common indicators include stochastic oscillators, Fibonacci retracements, and MACD (Moving Average Convergence Divergence). Traders typically use a combination of these indicators to gain a comprehensive understanding of market trends and potential opportunities for profitable trades.

Technical analysis uses various indicators to predict price movements and identify trading opportunities. Some key indicators include:

1. Moving Averages (MA) – Smooths price data to identify trends (e.g., Simple MA, Exponential MA).

2. Relative Strength Index (RSI) – Measures overbought (above 70) or oversold (below 30) conditions.

3. Moving Average Convergence Divergence (MACD) – Shows trend momentum using two MAs.

4. Bollinger Bands – Indicates volatility with upper/lower bands around a moving average.

5. Stochastic Oscillator – Compares closing prices to a price range to detect reversals.

6. Fibonacci Retracement – Identifies support/resistance levels based on key ratios (23.6%, 38.2%, etc.).

7. Volume Indicators – Confirm trends by analysing trade volume (e.g., On-Balance Volume).

These tools help traders make informed decisions by analysing past price patterns and market behaviour.