Technical Indicators are the often squiggly lines found above, below and on-top-of the price information on a technical chart. Indicators that use the same scale as prices are typically plotted on top of the price bars and are therefore referred to as “Overlays”.
Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements. These are the bases of algorithms used in stock market. These algorithms are for readymade use, instead of manual calculations.
Two of these indicators are 1. Moving Average. This is very useful for for a chart with upward and downward movements (Trending). RSI : This is very useful for a chart with sidelines movement(Non-Trending). Other than these indicators, Fibonacci series and the Golden mean are also used to predict the market.
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