The technical indicators are wavy lines evolving inside a gradation box. It is according to certain past references, calculated either from the opens/closes; or from the highiest high/lowest low, depending on the tool itself, that we obtain this dynamic and graphic result.
Such tools are used in swing trading as well as in shorter term, intraday trading, in order to obtain signals – in concomitance with an initial reading of the graphs – that can help in the decision making process.
Nevertheless, take into account that the data necessary to “bring these analysis tools to life” is based as much on past as on present information. Thus technical indicators can be asynchronous and dangerously distort our reading of the markets.
We cannot simply adjust our trade choices with these tools alone.