Trading Indicator

Definition - What does Trading Indicator mean?

A trading indicator is any data or series of data points that helps a trader to predict the future movement of a currency or currency pair. Trading indicators are usually technical in nature, meaning that they are calculated using past data.

ForexDictionary explains Trading Indicator

Sometimes news or economic releases are referred to as trading indicators, but these figures usually have an emotional effect on the market that is difficult to quantify with mathematics. Most trading indicators are ratios or averages of previous data such as the moving average convergence divergence (MACD) and the relative strength index (RSI).

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