With direct addressing, the length of the address field is usually less than the word length, thus limiting the address range. One solution is to have the address field refer to the address of a word in memory, which in turn contains a full-length address of the operand. This is know as indirect addressing:
EA = (A)

Figure 4.3: Indirect Addressing Mode
The exact memory location of the operand in case of indirect addressing mode is shown in the Figure 4.2. Here 'A' indicates the memory address field of the required operands.