Use 'indeed' when you want to emphasize that somebody or some fact/observation is correct. Rabbit: I am scared of Wolves because they eat rabbits. Wolf: Indeed, rabbits taste delicious! (^0^) Student: I should have studied last night for the big test. Teacher: Indeed. If you studied, you wouldn't have gotten a bad grade. Use 'actually' when you want to tell somebody that they understood you incorrectly, and you want to correct them. Baby Rabbit: Mommy, rabbits eat wolves right? Mother Rabbit: Actually, wolves eat rabbits. ;0 Teacher: You studied for the test last night right? Student: Actually, I was sick and went to sleep.

It is not synonymous with "actually" but it is with "yes."

Use "indeed" when you want to confirm or agree with a statement. For example: "Indeed, I look gorgeous in the mirror!"

we can use it at first or in the end of sentence which is connected to the previous by meaning. and we are clarifying the subject to sb by adding reasons or showing little contrast in order to keep the concentration on the core of main discussion. also you would find some good examples by Googling it. good luck

Aside from the examples that Dragon8 gave, "indeed" can be used after auxiliary verbs (helper verbs, such as am/are/etc...) to emphasize a point. "That is indeed the correct answer." "They are indeed taller than most people."