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Facebook Technical Indicators As the name suggests, Technical Indicators are used to indicate trends and possible turning points in stock prices. These are the tools used by Technical Analysts to predict cycles, and to predict when is the best time to buy or sell a stock or option.

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This article focuses on a few important technical indicators popular among options traders. Also, please note that this article assumes familiarity with options terminology and calculations involved in technical indicators.

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They can range from a simple moving average to a complex array of algorithms. But of all the financial markets, Forex is arguably the worst offender of overutilizing indicators. Other trading platforms offer similar languages.

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Using Technical Indicators Technical indicators can be used to help you enter and exit trades. They assist you in predicting the future with a fair amount of accuracy, and are very instrumental in maximizing trading profits and minimizing losses. Technical indicators are a good supplement to your use of technical analysis.

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