In our improvised school of trading and trading tools the time has come in order to move forward and gain some additional knowledge of the trading tools.
Today it is time to talk about another little tool that is going to be extremely helpful if our future trades. We are talking of course about leading and lagging indicators. What are these and can they really help you become rich? Let’s look closer.
A leading indicator is an indicator that gives a signal before a trend occurs.
And there is, of course, lagging indicators. And I have to admit, the word ’lag’ does not have a good connotation in our mind. It is something that is slow and spoils the entire experience. But in this case something that is lagging is actually better that the other option.