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A
technical indicator is a type of
analysisTechnical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume.-History:...
chart that indicates
marketIn economics, a financial market is a mechanism that allows people to easily buy and sell financial securities , commodities , and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis.Financial markets have evolved significantly over...
direction. Some common indicators are
StochasticsThe stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span.This indicator is usually calculated as:...
,
MACDMACD, which stands for Moving Average Convergence / Divergence, is a technical analysis indicator created by Gerald Appel in the 1960s. It shows the difference between a fast and slow exponential moving average of closing prices. During the 1980s MACD proved to be a valuable tool for any...
, Moving average,
RSIThe Relative Strength Index is a financial technical analysis momentum oscillator measuring the velocity and magnitude of directional price movement by comparing upward and downward close-to-close movements....
and a host of others.
Indicators generally overlay on price chart data to indicate where the price is going, or whether the price is in an "overbought" condition or an "oversold" condition.