Technical analysis tries to capture market psychology and sentiment by analyzing price trends and chart patterns for possible trading opportunities. Traders should ...TechnicalindicatorFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchMathematicalcalculationfrommarketdatatocreateaforecastIntechnicalanalysisinfinance,atechnicalindicatorisamathematicalcalculationbasedonhistoricprice,volume,or(inthecaseoffuturescontracts)openinterestinformationthataimstoforecastfinancialmarketdirection.[1]Technicalindicatorsareafundamentalpartoftechnicalanalysisandaretypicallyplottedasachartpatterntotrytopredictthemarkettrend.[2]Indicatorsgenerallyoverlayonpricechartdatatoindicatewherethepriceisgoing,orwhetherthepriceisinan"overbought"conditionoran"oversold"condition.Manytechnicalindicatorshavebeendevelopedandnewvariantscontinuetobedevelopedbytraderswiththeaimofgettingbetterresults.NewIndicatorsareoftenbacktestedonhistoricpriceandvolumedatatoseehoweffectivetheywouldhavebeentopredictfutureevents.In technicalinvestigation,abogussignalludestoasignoffuturevaluedevelopmentsthat givesanoffbaseimageofthefinancialreality.Falsesignsmayemergebecauseofvariouscomponents,includingtimingslacks,inconsistenciesininformationsources,smoothingstrategiesoreventhecalculationbywhichthepointerisdetermined.Technicalanalysistriestocapturemarketpsychologyandsentimentbyanalyzingpricetrendsandchartpatternsforpossibletradingopportunities.Tradersshouldbecarefulwhentakingtradessolelybasedonindicatorssincetheyarenotfoolproof.References[edit]^Murphy,JohnJ.(1999).Technicalanalysisofthefinancialmarkets :acomprehensiveguidetotradingmethodsandapplications(2nd ed.).NewYork[u.a.]:NewYorkInst.ofFinance.ISBN 0735200661.^"TechnicalIndicators".MLQ4Community.RetrievedSeptember29,2014.vteTechnicalanalysisConceptsBreakoutDeadcatbounceDowtheoryElliottwaveprincipleMarkettrendChartsCandlestickRenkoKagiLineOpen-high-low-closePointandfigurePatternsChartBroadeningtopCupandhandleDoubletopanddoublebottomFlagandpennantGapHeadand