Trading indicators are mathematical calculations or visual tools traders use to analyze market trends, price movements, and potential trading opportunities. They help traders make informed decisions by identifying patterns, momentum, volatility, and trend strength in financial markets like stocks, forex, and cryptocurrencies.

Types of Trading Indicators
Trend Indicators (e.g., Moving Averages, MACD) – Show market direction (uptrend/downtrend).

Momentum Indicators (e.g., RSI, Stochastic Oscillator) – Measure the speed of price movements to identify overbought/oversold conditions.

Volatility Indicators (e.g., Bollinger Bands, ATR) – Indicate price fluctuation levels.

Volume Indicators (e.g., OBV, VWAP) – Analyze trading volume to confirm trends.

How Traders Use Them
Indicators help in:

Entry & Exit Points (e.g., RSI above 70 signals overbought, suggesting a sell).

Trend Confirmation (e.g., Moving Averages crossing indicates trend reversal).

Risk Management (e.g., Bollinger Bands show potential price breakouts).

While useful, no indicator is 100% accurate. Traders often combine multiple indicators with fundamental analysis for better results. Proper understanding and backtesting are essential before relying on them in live trading.