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: limit order, EBITDA, reverse mortgage, per diem, balance sheet, APR, option premium, cancelled check, required rate of return, debt service coverage, covered put, wholly-owned subsidiary, Key Rate Duration, dividends payable, liquidity ratio, deferred revenue, labor relations, quality assurance, diluted share, margin rate, 144a, inflation, ex-dividend, in escrow, risk management, retained earnings, deferred tax, FICO score, 401a, stock split, 1035 exchange, phantom income, command economy, FTSE, minority interest, irrevocable trust, VIX, stock market close, average price per share, Zero Cost Collar, open position, 1031 exchange, current ratio, ex-dividend date, implied volatility, annual return, real GDP, LIBOR, 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
©2004-2016 Investor Glossary - All rights reserved - Terms of Use