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Technical indicators are calculations based on a security price and volume. They are used both to confirm the trend and the chart patterns' quality and to help to determine the buy and sell signals. They can be applied separately to form buy and sell signals, or used together in addition to chart patterns and price movement.
Technical analysis indicators can generate buy and sell signals through moving average crossovers and divergence. Crossovers express when price moves through the moving average or when two different moving averages cross each other. Divergence express when the price trend and the indicator trend move in opposite directions indicating weakness of the price trend direction.
Not all of the technical indicators are widely used in the Forex systems. The ones of utmost importance for developers and at least one of them is used to develop their trading strategy are the following:
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