Market indicators are statistical measures that help investors assess the overall health and direction of financial markets. They can include various metrics such as stock prices, trading volumes, and economic data like GDP growth rates or unemployment figures. These indicators provide insights into market trends, helping investors make informed decisions about buying or selling assets.
There are two main types of market indicators: leading and lagging. Leading indicators, such as consumer confidence and housing starts, predict future economic activity, while lagging indicators, like inflation rates and corporate earnings, reflect past performance. Together, they offer a comprehensive view of market conditions.