Samsonite
Well-Known Member
+ Leading indicators are designed to lead price movements
Most represent a form of price momentum over a fixed look-back period, which is the number of periods used to calculate the indicator. Some Leading Indis are: Commodity Channel Index (CCI), Momentum, Relative Strength Index (RSI), Stochastic Oscillator and Williams %R
+ Lagging indicators follow the price action and are commonly referred to as trend-following indicators.
Rarely, if ever, will these indicators lead the price of a security. Trend-following indicators work best when markets or securities develop strong trends. They are designed to get traders in and keep them in as long as the trend is intact
Some popular trend-following indicators include moving averages (exponential, simple, weighted, variable) and MACD.
Most represent a form of price momentum over a fixed look-back period, which is the number of periods used to calculate the indicator. Some Leading Indis are: Commodity Channel Index (CCI), Momentum, Relative Strength Index (RSI), Stochastic Oscillator and Williams %R
+ Lagging indicators follow the price action and are commonly referred to as trend-following indicators.
Rarely, if ever, will these indicators lead the price of a security. Trend-following indicators work best when markets or securities develop strong trends. They are designed to get traders in and keep them in as long as the trend is intact
Some popular trend-following indicators include moving averages (exponential, simple, weighted, variable) and MACD.