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.

RELATED TERMS
  1. Breadth Thrust Indicator

    A technical indicator used to ascertain market momentum. The ...
  2. Hindenburg Omen

    A technical indicator named after the famous crash of the German ...
  3. McClellan Oscillator

    A market breadth indicator that is based on the difference between ...
  4. Arms Index - TRIN

    A technical analysis indicator that compares advancing and declining ...
  5. Absolute Breadth Index - ABI

    A market indicator used to determine volatility levels in the ...
  6. Advance/Decline Line - A/D

    A technical indicator that plots changes in the value of the ...
Related Articles
  1. Technical Indicators

    Be Aware Of The Hindenburg

    This indicator can protect your profits from going into a tailspin.
  2. Active Trading

    Introduction To The Arms Index

    Developed in 1967 by Richard Arms, this volume-based breadth indicator can be applied over various time periods.
  3. Fundamental Analysis

    4 Key Indicators That Move The Markets

    Find out what reports to watch in order to anticipate and react to market movements.
  4. Insurance

    Exploring Oscillators and Indicators

    Find out how to use these technical analysis building blocks.
  5. Trading Strategies

    Market Strength Tutorial

    Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend.
  6. Active Trading Fundamentals

    Market Breadth: A Directory Of Internal Indicators

    Discover the indicators that measure the force of the bulls and bears, telling you what a simple price chart cannot.
  7. Trading Strategies

    Mastering Short-Term Trading

    The proper application of a few different tools can help a short-term trader succeed.
  8. Investing Basics

    Free Cash Flow Yield: A Fundamental Indicator

    Free cash flow can measure a business’s performance as if you’re looking at its net income line.
  9. Technical Indicators

    Four Commonly Used Indicators In Trend Trading

    No single indicator can punch a ticket to market riches, but here are four that remain popular among trend traders.
  10. Active Trading Fundamentals

    4 Stocks With Bullish Head and Shoulders Patterns for 2016 (PG, ETR)

    Discover analyses of the top four stocks with bullish head and shoulders patterns forming in 2016, and learn the prices at which they should be considered.
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 >>
  2. What is the difference between market indicators and economic indicators?

    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 >>
  5. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  6. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center