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Technical analysis is the study of price patterns on a particular asset. Traders use price action indicators to help in understanding the market condition. For example, many indicators provide signals on when the market is overbought or oversold. Other indicators provide clues on the rising and falling momentum.

There are mainly two types of these kind of indicators: leading indicators and lagging indicators.

Leading indicators are used to predict price by using a shorter period in their calculation, thereby leading the price movement. The most popular leading indicators are Stochastic, MACD and RSI.

Lagging indicators are used to give a signal after the trend or reversal has started. The most common lagging indicator is the Moving Average.

Indicators from both categories belong to one of the following types: trend, momentum, volatility or volume indicators.

Trend Indicators

These indicators are designed to show traders and investors the trend or direction of the asset they are trading. The trend of an asset can be either downwards (we are talking here about bearish trend), upwards (bullish trend) or sideways (no clear direction).

Momentum Indicators

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