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

    A technical indicator used to ascertain market momentum. The ...
  2. Technical Indicator

    Any class of metrics whose value is derived from generic price ...
  3. Market Breadth

    A technique used in technical analysis that attempts to gauge ...
  4. Advance/Decline Line - A/D

    A technical indicator that plots changes in the value of the ...
  5. Arms Index - TRIN

    A technical analysis indicator that compares advancing and declining ...
  6. McClellan Oscillator

    A market breadth indicator that is based on the difference between ...
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