Study notes based on Babypips course:
babypips.com/learn/forex/lagging-indicators-momentum-indicators
Momentum Indicators aka Lagging Indicators
- More accurate in representing changes in trend
- However, lags behind the trend shift, reducing profit margins
- Less prone to false signals / fakeouts so less risky
Delayed entry but higher accuracy. They can still provide some fakeouts especially when price has lowered volatility, or is somewhat rangebound.
Examples: MA's, MACD
babypips.com/learn/forex/lagging-indicators-momentum-indicators
Momentum Indicators aka Lagging Indicators
- More accurate in representing changes in trend
- However, lags behind the trend shift, reducing profit margins
- Less prone to false signals / fakeouts so less risky
Delayed entry but higher accuracy. They can still provide some fakeouts especially when price has lowered volatility, or is somewhat rangebound.
Examples: MA's, MACD
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