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Indicators & Oscillators

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Indicators & Oscillators

Lagging Indicator

An indicator that confirms a move after it is under way, typically built by smoothing price over a lookback window.

Test: the indicator averages or smooths past values, so its turning point necessarily follows price's own qualitative Indicators & Oscillators

Leading Indicator

An indicator claimed to change before price does, usually built from the rate of change rather than the level of price.

Test: the indicator's construction emphasises the most recent periods so that it turns before a smoothed measure would qualitative Indicators & Oscillators

Lookback Period

The number of past periods an indicator examines when computing its current value.

Test: the indicator's value at time t depends on data from t - n + 1 through t, and on nothing earlier days