External indicators are derived from the market but are NOT known to significantly influence it. Which is an example of an external indicator?

General economic trends serve as external indicators because they reflect the broader economic environment impacting the market, without being directly influenced by the market itself. These trends include factors such as GDP growth rates, unemployment figures, and inflation rates. They provide context and insights that might guide traders and investors about future market conditions, helping them to make informed decisions based on the state of the economy as a whole, rather than on immediate market movements.

Understanding general economic trends is crucial for market technicians, as these trends can set the stage for market behavior, influencing trends in investor behavior, but they do not derive from market price movements themselves. Instead, they reflect the larger economic landscape that can provide additional layers of analysis when evaluating market conditions.