Types of indicator

Types of Indicator 
A. Leading Indicator 
B. Lagging Indicator
 
  Leading Indicator Lagging Indicator
 
  1.  
Leading Indicator gives the signal before the start of a new trend or when a trend is about to terminate where reversal is most probably going to happen.
 
Lagging Indicator gives the signal only after the termination of a trend or after when a new trend has already started picking the strength.
  1.  
Low Success Ratio Higher Success Ratio
 
  1.  
Better result in Short term Trading Better in Long term Trading
 
  1.  
Better suited when an equity is bouncing between support and resistance levels
 
Better suited to establishing trends
 
Function
  1. Identify Momentum, 
  2. Trend, 
  3. Strength,
  4. Volatility.
Technical Oscillators
They are accepted generally because of their ability to portray a possible trend change in the ongoing trend much before the actual trend change starts with the help of price and volume. They work finest in all types of market periods whether sideways markets or trending markets.  Oscillator is an indicator that fluctuates above and below a center line or between predefined values or level over a certain period of time.
Oscillators tend to oscillate in a certain predefined range.
Indicators are largely supported as leading indicators with an idea of probable trend change or to identify the start of a new trend. Oscillators are also used to detect imbalances in the market. For example, if the price is rising too quickly, the oscillator reaches a level at which the market is considered overbought & vice versa.

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