Indicators are best described as:

Math applied to past price. They summarise the past.

RSI belongs to which group?

Momentum. RSI is a momentum oscillator.

Stacking many similar indicators:

Adds little new information. They measure the same thing.

What Indicators Really Do

Indicators are math applied to price. Learn what they can and cannot tell you.

An indicator is a formula applied to price, and sometimes volume. It does not see the future. It summarises the past in a way that can be easier to read than raw candles.

Indicators fall into groups: trend (moving averages, ADX), momentum (RSI, MACD, Stochastic), volatility (Bollinger Bands, ATR) and volume (OBV). Using several from the same group adds little new information.

Most indicators lag. Good use means combining one trend tool, one momentum tool and clean price action, not stacking ten lines.

Key takeaways

Indicators summarise past price, they do not predict
Groups: trend, momentum, volatility, volume
Avoid stacking indicators from the same group

Quiz

Indicators are best described as: Answer: Math applied to past price. They summarise the past.
RSI belongs to which group? Answer: Momentum. RSI is a momentum oscillator.
Stacking many similar indicators: Answer: Adds little new information. They measure the same thing.

Educational content, not financial advice.