6. Leading Indicators

Question 1

When are leading indicators useful?

Answer 1

In sideways movements, they use their oversold and overbought areas to predict where the market will turn around

Question 2

What is a leading indicator?

Answer 2

These types of indicators signal future events

Question 3

What type of indicator is an oscillator?

Answer 3

Leading Indicator

Question 4

What is the 1st step when using lead indicators?

Answer 4

Determine the current market environment, is the market in a trend or is the market in a non trending sideways movement

Question 5

What is the second step when using leading indicators?

Answer 5

Depending on your diagnosis, only use leading indicators for non trending markets

Question 6

When are lagging indicators crucial?

Answer 6

When trading based on trends

Question 7

Why are lagging indicators useful?

Answer 7

A trader using a moving average can easily determine the market, in trending periods they are also useful to find out where the market is going

Question 8

When are lagging indicators useless?

Answer 8

During periods of sideways movement