Market indicators are tools used to interpret price behavior, volatility, momentum, and market context. Rather than predicting outcomes, indicators help frame probabilities and provide structure around decision-making. When used properly, they serve as a way to organize information, reduce emotional bias, and support consistency across trades.
No single indicator works in isolation, and their effectiveness depends on how they are integrated into a broader process. Some indicators are better suited for identifying trend conditions, while others help with timing, confirmation, or risk management. The key is not the number of indicators used, but how well they align with a trader’s approach, time horizon, and discipline.
Below are a few of the market indicators that are currently being studied and used as part of this trading journal. Each is included because it supports the documentation and review process, and the list will continue to evolve as experience and understanding develop.
Contrarian Indicators:
- American Association of Individual Investors (AAII); “sentiment survey/crowd psychology”.
- Investor Intelligence Advisory Sentiment Survey (IIASS).
- Put/Call Ration (my favorite so far).
- International Securities Exchange Sentiment (ISEE); ” Based on Index Call/Put”.
- CBOE Volatility Index (VIX).
Economic Indicators:
- Gross Domestic Product (GDP).
- Institute of Supply and Management (ISM).
- Employment/Unemployment Rates
- Interest Rates
- Inflation Rates (CPI)
Technical Indicators:
- New High/New Low Index.
- The Arms Index (TRIN).
- Advance-Decline Index (A/D).
- Exponential Moving Averages (EMA) {20/50 Short} {50/200 long}.
- MACD {6/19/9 Short} {12/26/9 Normal} {12/39/9 Swing} {24/52/18 Long} (“Use with High/Low”)
- Bollinger Bands {20 EMA; 2.o SD Short} {50 EMA; 2.1 SD Swing}.
- RSI/ Stochastic (Momentum Oscillators) LEADING INDICATORS
Outside-The-Box Indicators:
- Calendars of Events
- Cycles
- Supply and Demand