Stock market indicators refer to indicators used to measure and evaluate the stock market. Sentiment indexes, for example, are stock market indicators that measure investors' sentiment. Market breadth indicators (Advance/decline line, Advance/decline ratio, Arms index, Up/Down Volume Spread, McClellan Summation Index) are also another type of stock market indicators.
Other stock market indicators include:
Options-based indicators like the put call ratio.
Volatility-based indicators like the VIX.
Capitalization-weighted indices like the S&P500 or the RUSSELL 2000.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
