Any class of metrics whose value is derived from generic price activity in a stock or / asset. Technical indicators look to predict the future price levels, or / simply the general price direction, of a security by looking at past patterns.
Examples of common technical indicators include Relative Strength Index, Money Flow Index, Stochastics, MACD & Bollinger Bands®.
Investopedia explains Technical Indicator..!
Technical indicators, collectively called "technicals", are distinguished by the fact that they do not analyze any part of the fundamental business, earnings, revenue & profit margins. Technical indicators are used most extensively by active traders in the share market, as they are designed primarily for analyzing short - term price movements. To a long - term investor, most technical indicators are of little value, as they do nothing to shed light on the underlying business. The most effective uses of technicals for a long - term investor are to help identify good entry and exit points for the stock by analyzing the long - term trend.
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