Leading versus Lagging – which is best?


Example of leading indicator:

  • RSI or Stochastic
  • Most of the leading indicators are oscillators i.e. are range bound between 1 and 100, 100 being overbought and 1 being oversold etc.

Example of a lagging indicator:

  • MACD or Bollinger Bands or moving averages

Make you sure you know what system you are following because, using the wrong indicator with the right principles could cause you to trade a weak system.

Good luck and all the best for 2017


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