There are over 200 technical analysis tools available for traders and investors. We focus on the Median indicator, a technical analysis tool used in the retail financial services industry to measure the market’s current direction and volatility. Here is a quick overview of what the indicator is used for, essential tips on how it is commonly used, and how it compares with other indicators. (Look at the historical prices of several stocks and trading assets on Tradinview’s charts).

What Is the Use of the Median Indicator?
The median is the midpoint of a particular data set, and it is the middle number in a sorted list of numbers in ascending or descending order. In forex trading, the median indicator tool forms the channel based on how the average actual value deviates from the middle of the range, thus comparing the exponential moving average, which tracks the price of commodities, stocks, CFDs, or other financial instruments.
Tips on How To Use Median Indicator
As stated above, the median indicator tool shows the median value of the average between high and low values for a specified length. The median is compared to its EMA for the same length. The space between the two is displayed as a cloud coloured concerning which of the values is higher. When the median is higher, this indicates an uptrend represented by a green cloud, while when the median is lower, it means a downtrend represented by a violet cloud.
Median Indicator | Indicator Series Click To TweetHow Does the Median Indicator Compare With Other Indicators?
A growing number of indicators are available to traders for study and use. Some of the most widely used indicators include:
- The relative strength index
- Aroon indicator
- Average directional index
- Stochastic Oscillator
- On-balance volume
Just like the median indicator, an indicator can only assist traders in identifying market conditions, it is not a trading strategy. The indicator a trader chooses to use depends on the strategy of individual plans concerning the trading style and risk tolerance.
How Can We Help?
If you are still unsure and do not have a strategy on how to go about trading in the financial markets, you can try out the median indicator tool today to help you make informed trading decisions. You can find the median indicator tool in the field under “How can we help?” For more insight about trading, please subscribe to tradingview.com and join the conversation with other traders.
You can also contact DGM Tech Solutions Limited if you need any IT services and consultancy relating to the financial services industry.