Indicator, Definition
A value that is based on a securities price and/or volume and used to forecast future price movements. Indicators are divided into two groups: trend following/lagging and momentum/leading. Lagging indicators reflect what prices are doing now, or in the recent past, and are useful in a trending market. A moving average is an example of a lagging indicator. Leading indicators attempt to anticipate future price action, and oscillators such as the Commodity Channel Index are examples. In an economic context, an indicator could be a measure such as Gross Domestic Product that may be used to forecast future economic trends.