Lagging or Leading Nature of Trading Indicators

Lagging or Leading Nature of Trading Indicators

Categories
Classification of the indicator as either lagging (following price action) or leading (attempting to predict future price movements). This distinction is crucial for understanding how to interpret the indicator's signals and its potential use in trading strategies.
  • Leading: Indicators that predict future price movements
  • Lagging: Indicators that confirm trends after they have started
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Facts about Lagging or Leading Nature of Trading Indicators