Lagging Vs Leading Indicators In Trading

Lagging indicators like moving averages use only past data and do not predict the price

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Signal given by Lagging indicator is delayed as it only confirms the ongoing trend . This might affect the risk reward ratio for trader

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Leading indicators like pivot points predict the future price movement

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Leading indicators give earlier signal than lagging indicator . It also gives a good risk reward ratio to trader if identified correctly

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Thanks for reading !

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