Technical Indicators

Definition ∞ Technical indicators are mathematical calculations based on price and volume data used to forecast future price movements of assets. These tools assist traders and analysts in identifying trends, momentum, and potential reversal points in market behavior. They are quantitative measures applied to historical data to inform trading decisions.
Context ∞ Technical indicators are a constant subject in cryptocurrency market analysis and news reporting, often cited to explain current price action or predict future trends. Discussions frequently involve popular indicators like moving averages, RSI, and MACD, and how they are being interpreted by traders. The effectiveness and predictive power of these indicators are subjects of ongoing debate among market participants.