What is an indicator?

It's Snake Pliskin · 29 December 2006

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 · 29 December 2006

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 · 29 December 2006

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 · 29 December 2006

Have moved this thread to the 'Beginners Lounge'.

Bobby · 29 December 2006

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 · 30 December 2006

Bobby said:
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 · 30 December 2006

theasxgorilla said:
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 · 30 December 2006

It's Snake Pliskin said:
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 · 30 December 2006

It's Snake Pliskin said:
An "epicurean banquet."

Yep Snake thats another way to examine it !

Place your bets .

Take care Barney

Cheers Bob.

wayneL · 30 December 2006

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 · 30 December 2006

wayneL said:
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 · 30 December 2006

Bobby said:
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 · 30 December 2006

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

wayneL · 30 December 2006

barney said:
(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 · 30 December 2006

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

If not I'll cop most

theasxgorilla · 30 December 2006

It's Snake Pliskin said:
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 · 30 December 2006

theasxgorilla said:
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 · 30 December 2006

wayneL said:
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 · 30 December 2006

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

wayneL · 30 December 2006

It's Snake Pliskin said:
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........

What is an indicator?

It's Snake Pliskin

theasxgorilla

Problem solved... next bubble.

theasxgorilla

Problem solved... next bubble.

Joe Blow

Administrator

Bobby

It's Snake Pliskin

It's Snake Pliskin

barney

Bobby

wayneL

VIVA LA LIBERTAD, CARAJO!

Bobby

barney

Bobby

wayneL

VIVA LA LIBERTAD, CARAJO!

Bobby

theasxgorilla

Problem solved... next bubble.

stevo

wayneL

VIVA LA LIBERTAD, CARAJO!

It's Snake Pliskin

wayneL

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