Hello everyone,
In the Middle School, Grade 6, course “Oscillators and Momentum Indicators”, the Parabolic SAR has been named as a leading indicator or an oscillator. Nevertheless, in the summary of the same grade’s course, we have a paragraph listing the Parabolic SAR as a lagging indicator.
So my question is: Is Parabolic SAR a lagging or a leading indicator?
The Williams %R, Stochastic, Parabolic SAR, and Relative Strength Index (RSI) are all oscillators.
Popular lagging indicators are Moving Averages (Simple, Exponential, Weighted), Parabolic SAR, and the Moving Average Convergence Divergence (MACD).
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All technical indicators that manipulate price data to plot other data on your chart are lagging indicators.
Parbolic SAR - Stop and reversal is a lagging indicator. It will give you a late signal but a signal less prone to fakeouts. I always use it as a trend confirming indicator. Hope this info helps you.
Any indicator that shows its signal after price has moved is lagging. Therefore SAR is lagging because it’s only when price goes lower that the red dot shows on top. Leading indicators give you a sign of what price might do in the future.
As mentioned it’s correct that leading indicators give you a sign of what price might do in the future.
I am new to babypips. been studying the contents for a few days and got confused by the same content too. Can web owner take a look on the contradicting contents