Probably the best primer on the subject is
Cynthia Grabo's now-declassified and updated text from the 1970's. In a simplistic nutshell, indications analysis works backward from a particular end-state. A series of indicators, or signposts, on the way to that end-state are developed and then monitored. Although developed for warning, any end-state or scenario can be broken down and analyzed using this methodology. The advantages are two-fold: It can be used to make predictions (which is what it was originally designed to do) but it also can provide a means to analyze and compare various courses of action one might take.
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