indicator

Indicator

Anything used to predict future financial or economic trends.

Notes:

In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. In an economic context, an indicator could be a measure such as the unemployment rate which can be used to predict future economic trends.

See also: Coincident Indicator, DJIA, Inflation, Interest Rates, Lagging Indicator, Leading Indicator, Technical Analysis

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Indicator

Used in the context of general equities. Technical or fundamental measurement that securities analysts use to forecast the market's direction, such as investment advisory sentiment, volume of stock trading, direction of interest rates, and buying or selling by corporate insiders.

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indicator

A variable used to forecast the value or change in the value of another variable. For example, changes in the producer price index are used to forecast subsequent changes in the consumer price index. Likewise, some financial analysts believe a change in the money supply is an indicator of the direction of the stock market. See also technical indicator.