Classifying Indicators leading & lagging he
Hello friends lets understand 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
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Wise investing
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