Market Indicators

DEFINITION of 'Market Indicators'

A series of technical indicators used by traders to predict the direction of the major financial indexes. Most market indicators are created by analyzing the number of companies that have reached new highs relative to the number that created new lows, also known as market breadth.

BREAKING DOWN 'Market Indicators'

Some of the most common market indicators are: Advance/Decline Index, Absolute Breadth Index, Arms Index and McClellan Oscillator. A general outlook on the market's direction is useful for traders looking for strength in individual equities because they ensure that the broader market forces are working in their favor.

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RELATED FAQS
  1. What are the most common market indicators to follow the European stock market and ...

    Market indicators can be used by technical analysts to measure the movements of major exchanges or indexes. Almost all market ... Read Full Answer >>
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    Investors, analysts and chartists rely on different kinds of indicators to provide a sense of order and understanding to ... Read Full Answer >>
  3. What are the most common market indicators experienced traders follow?

    The types of characteristics that make a good market indicator – such as ease of use, compatibility with other tools of technical ... Read Full Answer >>
  4. How can I use market breadth to my advantage?

    Market breadth is a study that compares the number of companies on a given exchange that have created new 52-week highs to ... Read Full Answer >>
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