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Can You Read Market Indicators?

Market indicators [1] are a collection of technical signs which traders use to predict how major financial indexes will move. The majority of such indicators are the result of significant amounts of analysis evaluating how many companies may have achieved new heights when compared to those which have hit new lows. This divergence is also referred to as market breadth.

You don’t have to come up with your own set of market indicators as there are already many in place for you to use. Evaluating said indicators will give you a better idea of how that particular segment of the market is doing at the time in which you want to invest.

Of course the real challenge any trader faces is determining which indicators are accurate and which are not. Here are some indicators which have been cited in the past: