Technical indicators

Technical indicators are mathematical measures that is calculated on the share price and share volume. Technical indicators are used to identify trends and trend reversals in the share price.

With the advent of the computer and software for technical analysis, it has become more common to use technical indicators for buy and sell decisions. Examples of technical indicators is moving averages, momentum, on balance volume and bollinger bands.

Technical indicators is used in conjunction with technical formations to identify trends, identify trend reversals and generate buy signals or sell signals.