Technical indicators are mathematical calculations or visual representations derived from historical price, volume, or open interest data of a financial asset, such as stocks, currencies, commodities, or indices. These indicators are used by traders and analysts to help them understand market trends, identify potential entry and exit points for trades, and gauge the strength or weakness of a particular trend or market movement.
Traders often use a combination of technical indicators to confirm signals and make informed trading decisions. However, it’s important to note that no single indicator is foolproof, and traders should use technical analysis alongside other forms of analysis, such as fundamental analysis and market sentiment, to make well-rounded trading decisions.
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