Lesson 6 – Oscillators and Momentum Indicators

In Forex trading, mastering the use of leading and lagging indicators is essential for making informed decisions. Leading Indicators provide early signals of potential trend reversals but are prone to false signals, while Lagging Indicators confirm trends after they begin, offering more reliability but often at the cost of delayed entries. Oscillators, a type of leading indicator, are particularly useful for identifying overbought or oversold conditions and potential trend ends. Combining these indicators, like using oscillators with lagging tools such as the MACD, can provide a more comprehensive view of the market, helping traders navigate both trending and ranging markets effectively.