The technical Indicators and oscillators are basically derived instruments from the Price and Volume. In technical analysis, traders use indicators and oscillators to eradicate the noise in the markets. Because markets never move up or come down in straight line.
The ultimate aim of traders is to identify the trend and capitalize on it to make profits. Thus, the indicators and oscillators are used to help traders smooth en the movement of price and volume.
The traders use indicators and oscillators to understand the strength of the trend – momentum, reversal points -Divergences, range expansion points – bands to gauge volatility and to determine volume participation to confirm the trend.
What are technical indicators?
The technical indicators basically are derived to gauge the momentum, volatility and trends in layman language.
What technical oscillators?
The technical oscillators are basically derived to know the range of the markets and shift in the range once happens.
The financial markets do trend up, down and move sideways usually indicators are used in trending markets and oscillators are used in sideways markets and to identify range breakout.