0Lagging indicators
Lagging indicators are mostly derived using an average of previous price action data. So think of moving averages indicators as you feel about Lagging indicators, for example- Simple Moving average, Exponential Moving Average.
The average is calculated after the price (buy-sell has happened).
The term Lag means falling behind. So lagging indicator results fall behind the Live price action in the market. Putting it even simpler, you can witness the move first, and then the lagging indicator confirms it.
Hence Lagging indicators are Confirming, confidence giving, assurers. You can think of them as double-checker confirmers.
Lagging indicators help the wyse* trader -NOT jump the gun.
With lagging indicators alone, a strategy can be made; the however best strategy is to combine it with other strategies -which we will discuss in the next post.
