Indicators & Oscillators
3 terms
Lagging Indicator
Indicators & Oscillators
qualitative
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
Leading Indicator
Indicators & Oscillators
qualitative
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
Lookback Period
Indicators & Oscillators
days
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