Trading indicators are tools used by traders to analyze market trends and make informed decisions. They are typically based on mathematical calculations derived from price, volume, or open interest data. Common types of indicators include moving averages, relative strength index (RSI), and Bollinger Bands, each serving different purposes in identifying potential buy or sell signals. These indicators help traders assess market conditions, such as momentum, volatility, and market strength. By interpreting these signals, traders can develop strategies to maximize profits and minimize risks. However, it's important to remember that no indicator is foolproof, and they should be used in conjunction with other analysis methods.