Leading and Lagging Indicators, before we have discussed a lot about various kinds of indicators that can be used to execute forex trading so that the opportunity to get profit can also increase. And on this occasion we want to invite you to understand the indicator chart concept, especially about the advantages and disadvantages of each.
There are two types of chart indicators, namely Leading Indicators that can give a signal before a new trend or reversal occurs and Lagging Indicators that give a signal after the trend occurs or simply say this to us “Hi bro note that the trend has started and you have missed the train”.
Maybe from here if we look at the two types of chart indicators above we will choose the leading indicator as our tool for forex trading because it is able to give a sell or buy signal before a new trend or reversal appears so that the opportunity to get profit will be even greater when compared to using lagging indicators.
By using leading indicators you may be able to open trading positions earlier for various periods with the opportunity to get big profits but unfortunately in reality it never happened.
Because when using leading indicators, we will face a lot of false signals. So leading indicators are tools that will give us a lot of false signals so that we will be easily lost in the forex market .
Then which one should we use? calm there is still a lagging indicator that is able to give a signal after the price has changed and will form a new pattern or trend. And you won’t often get fake signals and can enter the market even though it’s a little late.
Now that was a little explanation about leading indicators or can be referred to as the oscillator type and lagging indicators or commonly referred to as momentum. And even though the two are in conflict with each other does not mean that we will not use one of them both 🙂 so we will use it in accordance with market conditions for more details follow along the writing about leading and lagging this indicator …