Indicator

An indicator is a technical analysis tool that processes historical price, volume, or other market data to describe its past behaviour and statistical characteristics.

Indicators are shown as values or curves alongside the price chart. The most common ones include moving averages, the RSI and the MACD. They serve to summarise information about the market’s past evolution, for example, its volatility or recent trend.

An indicator describes historical data and does not constitute a forecast of future prices: past behaviour is not indicative of future behaviour. For this reason, indicators should be considered analytical tools rather than automatic operational signals.

Disclaimer: This entry is for information purposes only and does not constitute investment advice, a recommendation or a forecast of price movements.

Correlated words

Financial Instrument

A financial instrument is a contract that grants financial rights, such as shares, bonds or derivative products, to its holder.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities through which an issuer raises capital, committing to repay it together with a form of remuneration.

Deficit

A deficit is the situation in which, over a given period, outflows exceed inflows, resulting in a negative balance or shortfall.

Default

A default is a debtor's failure to meet the payment obligations arising from a debt or a financial instrument such as a bond.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

A capital gain is the profit realised when an asset is sold at a price higher than the price originally paid to acquire it.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.