Richard, There are three classes of indicators. One class is Oscillators. This include Stochastic, Rate of Change, Momentum, RSI, etc. Oscillators are leading or coincident indicators and often turn ahead of price.
Another class of indicators are "trend-following indicators" and this includes moving averages, MACD, MACD Histogram, ADX, and so forth. These indicators are lagging indicators - they turn after trend reverse.
The third class of indicators is called "Miscellaneous indicators" and this include, Advance/Decline Line, New High-New Low Index, Put-Call Ratio, Bullish Consensus, etc.
Christopher |
