Investor Glossary-technical indicatorInvestor Glossary-technical indicatorInvestor Glossary-technical indicatorInvestor Glossary-technical 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

Technical Indicator

The HTML to link to this page
 

A technical indicator is a series of values derived (i.e. using a mathematical formula) from historical data of an asset (e.g. price, volume). A common use of a technical indicator is to try to predict future price movements using prior price data. Some examples of a technical indicator are the simple moving average (SMA), the relative strength index (RSI), and the exponential moving average (EMA). The data from one technical indicator can be combined with another's to form a third technical indicator such as the moving average convergence/divergence (MACD) which might compare SMAs from a short time period to a longer one. The data from a technical indicator can confirm price trends, show an imminent price reversal, identity entry points for a trade and clean "noise" from a price chart. Technical indicators are primarily used by chartists as opposed to fundamental traders that prefer to trade based on criteria such as P/E ratios rather than a technical indicator.



Rate this technical 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
Home | 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