Forex technical indicators: summary of kinetic energy indicators and shock indicators
Lagging indicators send trading signals after new trends or reversal patterns appear.
In this lesson, we will quickly review what we have discussed before.
There are two types of graphical indicators: leading indicators and lagging indicators.
- The leading indicator issues trading signals before a new trend or reversal pattern appears;
- Lagging indicators send trading signals after new trends or reversal patterns appear.
If you can identify the trend category of the market when you are trading, you already have the ability to determine which indicator may give accurate trading signals, and which signals may not have a reference value.
So, how do you judge, when to use the volatility indicator, when to use the kinetic energy indicator, or to use both indicators at the same time?
This is another issue that concerns millions of dollars! After all, we know that they do not always send consistent trading signals at the same time.
We will give you millions of dollars right away…
Oh wait, we mean the way to earn millions of dollars.
As of now, you just understand that once you can determine the type of market you are trading, you will know which indicators will give accurate trading signals, and which indicators will be worthless.
This is no easy task. This skill will slowly improve as your experience grows.
In future courses, we will teach you how to correctly determine the market environment in which you are trading in order to better use these indicators.