Technical indicators are mathematics based technical tools used by traders and investors for getting and understanding a good picture of the past i.e., trends and predicting the future price trends of particular equity, commodities, etc. Examples of these technical indicators are – Moving Average, Pivot Points, Price Median, Weighted Close, etc.
There are Fundamentalists who are other types of traders who track, analyze, and predict the future price based on economic reports and annual reports.
What is the Goal of Using Technical Indicators?
The goal of using technical indicators helps in identifying trading opportunities. Moving average indicators for instance forecasting trend change. So Moving average when compiled with the price chart, traders get an idea about trend change.
Strategies in trading are defined by the objective of the trader i.e., employing indicators can help in deciding the entry, exit point in the market. A trading strategy is a combination of single or multiple rules which meet the condition set by traders which leads to the establishment, management, or closing of the trade. These strategies comprised of complete usage of single or multiple indicators to establish instances of the occurrence of the trade.
So by now, you would have known that you need to create your own strategy with the optimum usage of indicators provided to you for predicting the future of the trading. Each technical indicator will provide a different perspective, now you need to club all of these indicators together to make a better picture out of them.