Moving avgs are lagging indicators. Waiting to buy
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(Total Views: 383)
Posted On: 04/19/2017 1:25:07 PM
Moving avgs are lagging indicators. Waiting to buy until they're crossed or respected will net you less shares in the end. Know what you own.
What is a 'Lagging Indicator'
A lagging indicator is a measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend. It is often a technical indicator that trails the price action of an underlying asset, and traders use it to generate transaction signals or confirm the strength of a given trend. Since these indicators lag the price of the asset, a significant move in the market generally occurs before the indicator can provide a signal.
Read more: Lagging Indicator http://www.investopedia.com/terms/l/laggingin...z4eiWp1vSx
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What is a 'Lagging Indicator'
A lagging indicator is a measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend. It is often a technical indicator that trails the price action of an underlying asset, and traders use it to generate transaction signals or confirm the strength of a given trend. Since these indicators lag the price of the asset, a significant move in the market generally occurs before the indicator can provide a signal.
Read more: Lagging Indicator http://www.investopedia.com/terms/l/laggingin...z4eiWp1vSx
Follow us: Investopedia on Facebook
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