What is an indicator?

[It's Snake Pliskin]

I come across many different opinions and conjecture regarding indicators. I feel most confuse the word "indicators" with some basic indicators such as MACD, Stochs etc.
Stevo said price is an indicator.

So what is an indicator from the forum members here.

 

[theasxgorilla]

It's a derivative of either price or volume (or both) that allows one to try to interpret what price and/or volume have been doing and hopefully, therefore, what they will do projecting into the as yet unrevealed right side of the chart.

 

[theasxgorilla]

I suppose that price is not an indicator in and of itself, except in that it defines (indicates) what the market traded price was at a point in time.

However, when represented as a bar or a candle (or whatever) does that "summary" of the price action become an "indicator", since it helps us to interpret what happened in the market during the period that it summarises?

I sense a long philosophical discussion coming on

 

[Joe Blow]

Have moved this thread to the 'Beginners Lounge'.

 

[Bobby]

An indicator is just that, an indication of a probable outcome within a time component.
Some use indicators as a sybaritic within there own makeup.

If you think these tools are going to make you money, you may be disappointed.

Bob.

 

[It's Snake Pliskin]

An indicator is just that, an indication of a probable outcome within a time component.
Some use indicators as a sybaritic within there own makeup.

If you think these tools are going to make you money, you may be disappointed.

Bob.

Bobby,

I had to look that one up. An "epicurean banquet."

 

[It's Snake Pliskin]

I suppose that price is not an indicator in and of itself, except in that it defines (indicates) what the market traded price was at a point in time.

However, when represented as a bar or a candle (or whatever) does that "summary" of the price action become an "indicator", since it helps us to interpret what happened in the market during the period that it summarises?

I sense a long philosophical discussion coming on

So if price moves up or down does it indicate to buy or sell?

 

[barney]

So if price moves up or down does it indicate to buy or sell?

Howdy Snake, Its late here so I'll get a bit poetic .............. whether price up or price down represents a buy or sell is conditioned by our perception of what we think the masses are going to do, relative to what time frame we are thinking in.

Price action is simply the vehicle we hop into when we perceive the two way street/road is about to turn into a one way street, and then hopefully an expressway... then we exit at the toll gates and turn into a toll collector, taking payment from all those going in the wrong direction ............. Hows that for "deep" ........... Cheers, Barney ........... I gotta get some sleep; I'm starting to think "weird"!!

 

[Bobby]

An "epicurean banquet."

Yep Snake thats another way to examine it !

Place your bets .

Take care Barney

Cheers Bob.

 

[wayneL]

I guess we should look to the motoring version of indicator.

When it starts flickering it *may mean the car is going to turn. But I am sure we have all seen instances where this is simply not the case, cars may even turn without indication... particularly prevelant around schools at certain times of day.... or anytime where a female happens to be driving**

I'll get my hat, quick!!!!!

** Just a joke ladies

 

[Bobby]

I guess we should look to the motoring version of indicator.

When it starts flickering it *may mean the car is going to turn. But I am sure we have all seen instances where this is simply not the case, cars may even turn without indication... particularly prevelant around schools at certain times of day.... or anytime where a female happens to be driving**

I'll get my hat, quick!!!!!

** Just a joke ladies

Wayne its ok ! your stating fact, the female is not as clever as the male

 

[barney]

Wayne its ok ! your stating fact, the female is not as clever as the male

(One for Wayne and one for Bob) You are both brave men!! ........... At least you have the rest of the night to come up with some reasonable excuses should any of our "lady drivers" find this thread in the morning ................. ................. PS Ladies have nicer "indicators" than men regardless of their driving skills ............ Good night lads.

 

[Bobby]

Yes Barney - when they see this I do exspect a female reaction

 

[wayneL]

(One for Wayne and one for Bob) You are both brave men!! ........... At least you have the rest of the night to come up with some reasonable excuses should any of our "lady drivers" find this thread in the morning ................. ................. PS Ladies have nicer "indicators" than men regardless of their driving skills ............ Good night lads.

I am prepared:

 

[Bobby]

Gee check the **** protection, that will turn em on I hope !

If not I'll cop most

 

[theasxgorilla]

So if price moves up or down does it indicate to buy or sell?

Well, price itself is a static measure, but it does "indicate" that something has happened ie. an order of this amount was filled at this price.

In order to know whether price has gone up, or down, we need to know what price the previous order was at. We then have two pieces of information and the difference can "indicate" what has happened. Whether you buy or sell or not depends on how your interpret the tape

This is largely philosophical though. I think that most people use "indicators" synonymously with "technical indicators" and probably expect that when someone says "indicator" that they're refering to something at least as complex as a moving average.

 

[stevo]

In order to know whether price has gone up, or down, we need to know what price the previous order was at. We then have two pieces of information and the difference can "indicate" what has happened. Whether you buy or sell or not depends on how your interpret the tape

Spot on.

 

[wayneL]

I am prepared:

I'm sorry ladies!

Can I take off this suit of armour now? It's hot in here!

 

[It's Snake Pliskin]

What was supposed to be discussion on something has........

 

[wayneL]

What was supposed to be discussion on something has........

....turned into a joust?

Don't let the more sanguine amongst us distract you.

Carry on, carry on........