Technical Indicators in the Forex
A typical technical indicator applied to a chart uses one to three pieces of information: time, price and/or volume. The indicator takes that information and creates a visual representation of the data to give you insight into where a pair is headed.
Because Forex is a distributed market, there is very little volume information. That usually leaves just price and time. There are a lot of ways to analyze that information and the potential variables are endless. Understanding how to wade through this data is vital. Technical indicators are designed to help.