Trading Indicators

Trading Indicators are normaly certain parameters derived from previous trading activity data of a given financial venue at hand, such as a commodity, forex or stock. By extending the indicators' parameters into the future an insight can be gained as to the likely future behavior of such financial price action.

For the ease of use such data are often plotted on charts for a quick visual reference of what is going on. Some of the more common indicators include Volume, Moving Averages, Stochastics and Trendlines.

With today's online trading software a trader doesn't even have to know about the math behind such indicators. The data is often presented in the software with but a click of a mouse.