Technical Indicators

Technical indicators are derived from Technical Analysis (TA). Technical indicators such as Average prices, charts, average volumes, relative strength index (RSI), money flow index, various stochastic and bands etc helps traders/investors identify better buy/sell position for a stock.

Though short-term traders rely heavily on technical indicators, long term investors also use it for better entry position. But it helps in no way to judge stock merits based on company performance. It is wholly used to guess speculative price movements.

Technical indicators are derived from studying active trading of a security in exchanges not from the fundamental values of financial statements or annual reports.