Leading Indicators

Leading indicators attempt to predict future price action.

Most fundamental analysis attempts to use leading indicators such as news, central bank meeting minutes and various economic data to attempt to ascertain the future direction of a currency. Oscillators (RSI, stochastics, etc) also are leading indicators that attempt to identify possible reversals in price action but have limited value in trending markets and are best used in range-bound markets).

Leave a Reply

Your email address will not be published. Required fields are marked *