Use indicators to summarize momentum and trend behavior, but keep them subordinate to price structure and risk control.
Technical indicators take price and volume data and transform them into easier-to-read signals. They can help summarize trend, momentum, and volatility, but they do not create new information independently of the market itself.
This section covers three of the most widely used indicators: moving averages, RSI, and MACD. The recurring theme is discipline. Indicators are most useful when they confirm or challenge what the chart already suggests. They are least useful when traders stack too many of them together and treat every crossover or threshold as a trade by itself.
The stronger exam answer recognizes that indicators support judgment. They do not replace it.