Delayed Indicators Delayed Indicators

Delayed Indicators Delayed Indicators

So far we have commented on a lot of tools that can help you analyze the charts and identify trends in the Forex market. In fact, you already know a lot of information to use it effectively.

In this article we will analyze in detail the use of the indicators in the graphs. We want you to fully understand the strengths and weaknesses of each tool so that you are able to determine which ones work for you and which do not.

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Delayed Indicators Delayed Indicators

Let's discuss some concepts first. There are two types of indicators: those that lead or advance, and indicators that signal after or behind.

An early indicator gives a buy signal before the new trend occurs.

A delayed indicator gives a signal after the trend has already begun.

You will be thinking that you will be able to obtain benefits with the indicators advanced easily, since with these indicators you will be able to predict a new trend just in its beginnings. The problem is that the signals they give are not correct all the time.

When you use the leading indicators, you will experience many false signals.

The other option is delayed indicators, which are not so prone to false signals. Delayed indicators only give signals after the price change is clearly forming a trend.

The bad thing about them is that you will be opening operations a bit late. Usually, the biggest gains of a trend occur at the beginning of the trend, so using an indicator of this type can make you lose much of the potential gains.

Trend Followers and Indicators

For the purpose of this lesson, we will organize all of our technical indicators into two broad categories:

• Oscillators


• Speed ​​Indicators

Oscillators are advanced indicators.
The speed indicators are delayed indicators.

While both may be supportive of each other, they tend to generate conflict with each other. We do not say that the use must be exclusive of only one of the two types, but if you must understand the potential pitfalls of each one.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.