A Technical indicator is a mathematical formula applied to the security’s price, volume or open interest.
Technical indicator helps a trader analyse the price movement of a security. Technical indicators are meant to reduce the human job.
The technical indicators are categorised into trending indicators and non-trending indicators.
The Moving average is the trending indicator which works better is trending markets, but will not work in the sideways market.
RSI (Relative Strength Indicator) is the suitable indicator for sideways market which indicates the overbought and oversold regions. The trader should consider the overbought region for selling decisions and oversold region for buying decisions.
Fibonacci retracement is used to identify support and resistance zones.