Forex indicators are tools that allow trader who use price action strategies to better understand what is happening in the market and to predict what direction the price may take next

It is any type of metric with a value derived from a general activity of the price of a stock or other financial asset. As part of technical analysis, such indicators are used by traders to predict future price levels or the overall price direction of a particular security. They do this by analyzing previous patterns or previous market performance.

A Forex indicator is a tool used by traders to analyse price movements, market trends, and potential trade opportunities in the foreign exchange market. These indicators are based on mathematical calculations applied to historical price data, such as open, close, high, low, and volume. They help traders make informed decisions by highlighting patterns, momentum, and possible entry or exit points. Common types include trend indicators like moving averages, momentum indicators such as RSI, and volatility indicators like Bollinger Bands. While indicators provide valuable insights, they are not foolproof and should be used alongside risk management and sound trading strategies. Successful traders often combine multiple indicators to confirm signals and improve their chances of making profitable trades.