In forex trading, leading indicators are economic, political, or market indicators that can be used to predict future trends or events. They are called leading indicators because they usually lead and indicate future price changes.

For example, if the price of a stock is rising and the volume of trade is also increasing, the leading indicator will show that the stock price will continue to rise in the future.

Lagging indicators are indicators that follow price changes. They are called lagging indicators because they usually lag behind and follow price changes.

See also: What Are Leading And Lagging Indicators In Trading?

For example, if the price of a stock is rising and the number of new buyers is also increasing, you can use MACD to check if the fast-moving average has crossed over the slow-moving average. It is a lagging indicator because you use it for trend confirmation before placing a trade.

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