What type of indicator uses historical prices and volume data to analyze market behavior?

The correct answer is internal indicators because these types of indicators are primarily derived from historical price and volume data. They rely on past market behavior to evaluate trends, patterns, and potential future movements in the market. Internal indicators include various technical analysis tools, such as moving averages, the Relative Strength Index (RSI), and volume oscillators, which focus exclusively on market data rather than external factors or investor sentiment.

The other options refer to different methods of analysis. Fundamental indicators analyze economic data, earnings reports, and broader market conditions that impact the intrinsic value of securities. Psychological indicators gauge the emotional and psychological state of the market participants, while sentiment indicators measure the overall attitude of market participants towards a particular security or market. Each of these categories emphasizes different aspects of market analysis that do not specifically focus on historical prices and volume data as internal indicators do.