Technical indicators are tools created using some defined algorithm. They will help the traders to confirm the trend that they have identified using technical analysis like Dow theory, Price patterns, candlestick analysis and gap analysis. We need to keep in mind that these are just indicators and we cannot make decision only based on technical indicators but we should use it in conjunction with technical analysis.
Different technical indicators work well at different period. Moving average works well during trending period but they will fail during non-trending period. Similarly, the relative strength index works well during non-trending period but not during trending period.
There are also other indicators like Fibonacci retracement.
