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Chapter 13, Part III. Lagging Indicators.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jul 7, 2011.

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  1. Administrator

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    Part III. Lagging Indicators. [​IMG]
    Commander in Pips: And the last part in this chapter will be dedicated to lagging indicators. Here my view coincides with common one. Although common approach classifies as “lagging” trend indicators items such as Moving Averages and MACD, so I agree with that, but I also think that some of the oscillators that we’ve discussed in previous part are lagging as well. Despite the fact that their lag behind the price action could be smaller than of trend indicators. Sometimes trend indicators are called “Momentum Indicators”.

    Pipruit: And what common approach tells about advantages and disadvantages of lagging indicators?​

    [​IMG]

    Commander in Pips: Well, it tells us that since a new trend has been established, momentum or trend indicators will catch it. But it will happen with some lag, and it could turn that you will miss a good entry point. From the other side - it is less probability to be wrong, since momentum indicators are less sensitive to fake outs, and hence, rarely give bogus signals.
     
    #1 Administrator, Jul 7, 2011
    Lasted edited by : Sep 1, 2011
    Hamza Samiullah and fran alvarez like this.
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