Market indicators are a subset of technical indicators and are typically comprised of formulas and ratios. They aid investors’ investment / trading decisions.
The two most common types of market indicators are: Market Breadth indicators and Market Sentiment.
Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves.
Market indicators are similar to technical indicators in that both apply a statistical formula to a series of data points to draw a conclusion.
The difference is that market indicators use data points from multiple securities rather than just a single security.
Often times, market indicators are plotted on a separate chart rather than appearing above or below an index price chart.