Indicator
Some of the more common indicators that an average Investor should know.
P/E ratio
Simple but difficult to interprete. Can have entire book devoted to understanding the P/E ratio. An interesting point of view; assuming the price and dividend remains the same, it can be thought as how many years for the Investor to break even.
Newspaper sentiments
65% bullish comments could means a correction coming.
50% bearish for a few weeks could led to a technical rebound.
Put/Call ratio
A call is a like a ability to buy @ fixed price in the future
A put is a like a ability to sell @ fixed price in the future
If the ratio is more than 75%, it means the market is extremely bearish.
The investor will need to look out for a reversal in trend.
Like wise if the ratio is less than 50%, the market is due for a
correction.
Volatility Index (VIX)
Otherwise commonly known as the FEAR index.
Arms Index (TRIN)
www.armsinsider.com
McClellan Oscillator
www.mcoscillator.com
Golden Ratio (?!)
A nature-occuring pattern at approximately 62%
Volume
Most important. Money flowing will always creates volume. As an average Investor, one will heard of how expert Traders (aka Big Brothers) creating false bid queues and fake market depth information in order to misled the market. It is virtually impossible to create fake volume numbers.
Volume represents the real number of stocks and shares that been exchanged.