A technical indicator is a mathematical calculation based on the price, volume, or open interest of a security. Traders use these indicators to analyze market trends and make informed decisions about buying or selling assets. Common examples include the Moving Average, Relative Strength Index (RSI), and Bollinger Bands. These indicators help traders identify patterns and potential price movements by providing visual representations on charts. They can be categorized into trend indicators, momentum indicators, and volatility indicators, each serving a specific purpose in technical analysis. By using these tools, traders aim to enhance their trading strategies and improve their chances of success.