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An indicator is a mathematical statistic
that is used to measure current conditions and to forecast future
trends.
In the context of technical analysis, an indicator
is a mathematical calculation based on a securities price and/or volume.
The result is used to predict future prices. Common technical analysis
indicators are the moving average convergence-divergence (MACD)
indicator and the relative strength index (RSI).
In fundamental analysis, economic indicators such
as those that quantify current economic and industry conditions are used
to provide insight into the future profitability potential of public
companies.
In an economic context, an indicator could be a
measure such as the unemployment rate, which can be used to predict
future economic trends. Common general economic indicators are the
unemployment rate, new housing starts and the consumer price index
(CPI).
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