Leading vs. Lagging Indicators: Can They Help Time Your Entry and Exit?

Technical analysis is the science of adding indicators to crypto charts to determine trend strength and direction, and overbought or oversold readings. Many of the technical tools can be broken down into leading or lagging indicators. The leading indicators help predict trends, while the lagging indicators confirm the analysis. Wondering which is better when comparing leading vs. lagging indicators? Let’s review popular leading and lagging indicators and how, together, they become a powerful combination in any crypto trading plan.

Leading vs. Lagging Indicators: What Are They?

Before comparing leading vs. lagging indicators, it’s important to know how similar and different they are. Leading and lagging indicators are used in the technical analysis of price charts to predict and review the direction of price trends, potential reversal zones and target pricing for cryptocurrencies.