Technical indicators are mathematical tools used in trading to analyze price movements, trends, and market momentum by applying formulas to historical data such as price, volume, or open interest. Traders use them to identify potential entry and exit points, confirm market direction, and predict possible reversals. Common types of technical indicators include trend-following tools like moving averages, momentum indicators such as the Relative Strength Index (RSI), volatility measures like Bollinger Bands, and volume-based indicators like On-Balance Volume (OBV). While they can be very useful, technical indicators work best when combined with proper risk management and a clear trading strategy rather than being relied on alone.