Lagging indicator vs non lagging indicator

Lagging indicators are technical analysis tools that are based on past price data and are used to confirm trends or identify potential trend reversals. Because they are based on past data, lagging indicators may not provide timely signals about market conditions. Examples of lagging indicators include the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).

Non-lagging indicators, on the other hand, are technical analysis tools that are designed to provide real-time signals about market conditions. These indicators are based on current price data and may be more timely than lagging indicators. Examples of non-lagging indicators include moving averages, volume, on-balance volume (OBV), and Chaikin money flow (CMF).

It is important to note that no indicator is perfect and all indicators have their limitations. It is recommended to use a combination of different indicators to get a more comprehensive view of the market.