Trading in the financial markets, people have started a long time ago. Methods of analysis of the dynamics of prices people are constantly improving. To date, there are many possible systems of technical and fundamental analysis. A trader in the forex market in the decision, as a rule, takes into account both the fundamentals and the technical picture. Talking about the technical analysis of the forex market, first of all, we note that it's divided into two types: the graphical and mathematical. Mathematical analysis involves the use of indicators, the construction of which is carried out by means of analytical formulas.

Indicators are also divided into retarded and advanced. Delayed (or trend) indicators - is moving averages, momentum indicators, etc. Leading Indicators Forex - is oscillators. If the indicators of the first type just state the current dynamics, the oscillators are able to anticipate developments in the market. It sounds like this is not very plausible, but, nevertheless, it's. Situation in the forex market change very quickly, "bullish" trend replaced "bearish" and vice versa. Leading indicators forex can advance to react to the impending change of environment.

Examples of leading indicators and their description.

Despite the absolute benefit of the information content and leading indicators forex, we should not overestimate their accuracy. There is also subject to errors and false alarms. However, there are ways to minimize this type of error analysis. One of them - is the use of multiple oscillators to identify moments when the testimony of all the indicators are the same. This is called voting. This can significantly reduce the rate of error signals. The most popular forex leading indicators are:

• MACD. It's an indicator of convergence/divergence of moving averages. Educated to the divergence indicator (divergence) is very often a signal for change in trend (see figure). On the chart the Canadian dollar maximums are on the same level, but the extremes of the respective oscillator show a downward trend - that is the difference.
• RSI. Or the so-called relative strength index (Relative Strength Index). The main function of this leading indicator is reflected in it's name. RSI at a time tells us how strong the current trend. Compare indicator can with the price schedule. If they observed a correlation between them, it's likely the trend will continue. And if the dynamics of the indicator and the currency pair is considered different, then it's time to correct or change of trend.
• Stochastic Oscillator. Sufficiently accurate representative of the group of leading indicators. Standard features - the definition of trend strength and areas of overbought/oversold levels. As the signals are used in the intersection of the indicator lines.

At the moment there are quite a few leading indicators. Ranging from popular and classic and ending user. Despite the difficulties associated with the accuracy of the signals output oscillators, leading indicators are an integral part of almost every trading system.

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