Exhaustion indicators are another group of market breadth indicators. We present our exhaustion indicators and illustrate their use for investors and traders.

Owen Williams, CFA, DBA, is a Professor of Finance at the EM Lyon School of Business. Irrespective of an investor’s time horizon, an investor must make two decisions with every investment : when to buy and when to sell. Some use sophisticated techniques of market timing, such as studying chart patterns or looking at market-based indicators. Others use less sophisticated techniques including contributing to a retirement account at month’s end, regardless of the current price level. In this article, we share some more market-based indicators that aid in determining the strength of the current equity market.

Owen Williams is a Professor of Finance at the EM Lyon School of Business No matter what your investment horizon is, the price you pay for an asset will determine your future returns. While market timing is a skill that few ever master, having a better awareness of current market conditions, even without making significant directional bets will allow an investor to marginally optimize their buy/sell decisions. This articles presents the first set of invaluable market indicators that the best traders track.