Lagging leading? confirm trend

Hi,

i would like to ask something that i can’t understand.

I have read the school of baby pips. There is said that leading oscillators (rsi, stochatic etc) signe a possible reversal before it occur. Also that lagging (macd, emva, smva) give signe after the trend has started.

In capital <<set up your trading system>> is said that firstly find an indicator that help identify a new trend like mva and then confirm the trend with stochastic,rsi etc.

As you can see before had been said that rsi and stochastics are leading osc. and give signe before reversal occur.

I think that is something paradox to confirm trend with a leading osc. that is used to identify trend before it occur.

Because i am new in forex i wonder if i understood something wrong?

Could anyone help me?

Thank you for your time.

Any comment?

Put an RSI indicator on your 15 minute chart you will see how it indicates a price reversal as it is happening becuase it works in a different way to indicators based on moving averages.
I believe it uses the current volume of the price movement and will flicker up and down while the candle is still forming it can give false signals as can any other indicator but it is pretty good on 15 minute charts.
If it falls below the 30% line it indicates the price is likely to reverse and if it goes above the 70% line it indicates the price is likely to reverse the other way.
If you want to you can change the level lines positions to 20 and 80 to perhaps cut down on false signals somewhat.
Use it to give you entry points and also use another indicator such as a 200EMA line as a general trend indicator so you enter with the trend, not against it, that can cut down your chances of a bad trade considerably.
I have found RSI isnt so good at giving you exit points becuase it often signals the reversal too soon.

EDIT: Another drawback with the RSI is during big sudden price movements it can cause you to put in a order going the wrong way because for isntance it may rise above the 70% line becuase a lot of buying is occuring which would indicate a reversal is about to happen, you could put in your sell order right then but if the high pressure buying continues as often happens after some good economic news, the RSI line will stay up there while the price continues to rise sharply, leaving your sell order out in the cold.
For this reason most people use it in tandem with another indicator such as a macd to help even out false signals such as the scenario I just talked about.

Thank you for the valuable information and for your time.