Technical Analysis

Explanation of the term 'Indicator'

Definition of the financial term Indicator

Term
Indicator a.k.a Forumla

Usage
Trading term, Trading Software, Trading Tools, Technical Analysis

Usage Frequency
Very High

Context
Answers questions: What does Indicator mean? Define indicator. Explain what an Indicator is.

Definition of Indicator

An indicator is a mathematical function or formula used within trading or technical analysis software applications to most often give a graphical representation of that function based on price or volume development in the underlying security.

Indicators are some times divided into categories Oscillators and Trend-Following.

Common indicators include Moving Average, MACD, RSI.

Indicator is sometime referred to as ’forumla’ in the context of Trading or Technical Analysis Software.

Indicator is a frequently used in a variety of trading softwares.