The quantitative or mathematical tool for technical analysis is called the INDICATORS. The results of the mathematical processing of price averages and other characteristics of market movements form and generate signals and patterns showing a confirmation on the price chart.
Trading With Indicators
Technical indicators could be simple or complicated as it appears on the chart. Indicators take the raw data from a chart and present the data in a different format to assist in making trading decisions. There are different types of indicators, ranging from trend indicators, momentum, oscillators, etc. – all of which help to show visually the condition of a market.
Importance of Indicators
Techncal indicators are not 100% accurate with signals and no trading strategy should be based purely on a signal of a technical indicator. It is important to use trade, risk and money management in conjunction with all aspects of trading. The use of technical indicators is subjective and results can vary from different traders.
Trading becomes a lot easier if you know the right thing to do, including the right tool to use. It is reassuring that Forex traders have a wide range of Forex buy sell indicators to choose from.