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All you wanted to know about leading and lagging indicators in trading

Both indicators have different use in a trading model. It is not easy to follow the price after a leading indicator delivers a trading signal.

Topics
Markets | technical charts | Market technicals

Avdhut Bagkar  |  Mumbai 

Technical indicators assist in reading charts which, in turn, facilitate in confirmation of a trend. From the psychological view point, this helps traders develop a feeling of confidence while trading. The deeper knowledge of technical indicators aids in building a trading model that can deliver consistent returns over a period of time.

One can then efficiently predict the future outcome of any trading instrument with deeper insights of the technical setup. Technical indicators are briefly categorized into two spheres: leading and lagging indicators. Leading indicators are those that ...

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First Published: Thu, December 17 2020. 08:28 IST
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