Classifying Indicators leading & lagging he

 

Hello friends lets understand leading & lagging indicators 

Leading & lagging Indicators

Classifying Indicators

There are five types of indicators in technical analysis. Let’s put these indicators in the right bag.



Trend indicators – It is a lagging indicator to analyze if the market is moving up or down.


Mean reversion indicators – A lagging indicator that measures the length of the price swing before it retraces back.


Relative strength indicators – It is an oscillator which is a leading indicator that measures the buying and selling pressure in the market.


Momentum indicators – This leading indicator evaluates the speed with which the price changes over time.


Volume indicators – could act as a leading or a lagging indicator that tallies up trades and quantify the buyers and sellers in the market.


Examples of leading indicators

The widely accepted and used leading indicators include:


Fibonacci Retracement

channel

Support and Resistance levels


Example is below 

Keep reading keep growing 

Wise investing 





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