Market Indicators

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Breadth Thrust Indicator

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  2. Absolute Breadth Index - ABI

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  3. Advance/Decline Line - A/D

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  5. Hindenburg Omen

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  6. McClellan Oscillator

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RELATED FAQS
  1. 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 ...
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