Investor Glossary-indicatorInvestor Glossary-indicatorInvestor Glossary-indicatorInvestor Glossary-indicatorInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Indicator

The HTML to link to this page
 

Indicators are used by market timers to try and divine future market action. There are three primary varieties of indicators; technical, market and economic.

Technical indicators are mathematical or graphical representations of recent market activity. Most technical indicators are based solely on movements in price, but some also incorporate trading volume into the calculation. Because they use existing data, all technical indicators are by definition lagging indicators. Examples of widely used technical indicators are RSI, CCI and Bollinger Bands.

Market indicators attempt to measure characteristics of the market as a whole. The Volatility Index (VIX), for example, is an indicator of the market's expectations for future volatility. Other market indicators include the Arms Index (TRIN) and the McClellan Summation Index.

Economic indicators can be useful in determining prospects for the economy. Many economic indicators, such as unemployment and inflation numbers, are calculated by the government. Others, such as GDP growth and measures of consumer sentiment, are calculated by semi-public or private organizations.



Rate this indicator definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, 1031 exchange, wholly-owned subsidiary, margin rate, debt service coverage, phantom income, risk management, ex-dividend date, retained earnings, reverse mortgage, minority interest, required rate of return, FICO score, quality assurance, diluted share, open position, inflation, covered put, stock split, in escrow, cancelled check, real GDP, dividends payable, APR, liquidity ratio, FTSE, balance sheet, 1035 exchange, EBITDA, irrevocable trust, Key Rate Duration, ex-dividend, deferred tax, VIX, option premium, average price per share, implied volatility, current ratio, limit order, deferred revenue, per diem, Zero Cost Collar, annual return, 401a, stock market close, command economy, LIBOR, 144a, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use