A leading indicator, as the name suggest, is an indicator that provides a signal before a significant change in price in a particular currency pair occurs. Leading indicators are very powerful, once identified, as they provide an insight into likely market direction before at the earliest possible time. Lagging indicators are the opposite of leading indicators as they react after a change in price has taken place. Lagging indicators still provide profitable trading opportunities as you can still follow a trend after it begins.
The Momentum indicator is an indicator that calculates the value price shifts during a specific period of time, often defined as “X” candles. One of the things that make it a little unusual, Momentum is used as a leading indicator. Play video >>
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