A trading indicator is a statistical calculation based on the price and/or volume of a security or other asset. It is used as a technical analysis tool to help traders identify patterns, trends, and potential trade opportunities in the market. Indicators can be based on various types of data, such as price, volume, and open interest, and can be plotted on a chart to help traders visualize the data and make informed decisions. There are many different types of indicators, including trend indicators, momentum indicators, volatility indicators, and oscillators, each of which can provide different insights and help traders make different types of trades. Some common examples of trading indicators include the moving average, relative strength index (RSI), and Bollinger bands.