Leading Indicators

Leading Indicators are stock trading technical indicators, which indicate the change in the trend and momentum in advance.

When you enter stock market, you are going to decide whether you are going to become a long term investor or a short to long term trader.

If you are choosing to be a trader, technical Analysis. of stocks and commodities is the best way to make trade decision. You will be buying in a bull market and selling in a bear market.

Technical Indicators along with the stock charts, created by plotting price and volume are going to be your life style.

These Indicators are the mathematical derivatives of price and volume. Some of them are derived from other indicators.

These indicators generate buy and sell signals before the actual change in the trend. This helps in entering the market early in the trend.

Early entry minimizes the initial stop loss. This will positively affects our money management and risk to reward ratio.

Since these trading indicators give trade signal before the actual change of trend, they also give more of false signals.

They basically measure the momentum of the price movement. So, every time the momentum decreases or reverses we get a buy or a sell signal. But the prices continue in the same trend making the signal void.

So, they should be used along with other complimenting technical indicators.

Some of the common indicators which lead the market action are:

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