Market Indicators

AAA

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 ...
Related Articles
  1. Be Aware Of The Hindenburg
    Technical Indicators

    Be Aware Of The Hindenburg

  2. Introduction To The Arms Index
    Active Trading

    Introduction To The Arms Index

  3. 4 Key Indicators That Move The Markets
    Fundamental Analysis

    4 Key Indicators That Move The Markets

  4. How can I use market breadth to my advantage?
    Trading Strategies

    How can I use market breadth to my advantage?

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center