<i>"can you please explain in terms we can understand...thanks!!!"</i>
Be happy to.
Certain indicators that lag (everything lags, even price action lags itself) tell us where momentum exists... up, down or sideways at the moment.
They also tell us in harmony with price action whether a change in direction or beginning of a directional move has likely taken place.
Most importantly, a body in motion tends to remain in motion. Someone made that a universal law, didn't they? Same law applies to price action. Newbies look to anticipate where price turns are. Pros seek confirmation of such turns, then trade in harmony with that direction until the next change comes along, one tick or twenty ES index points later.
Traders who don't yet understand that process simply don't know what they do not know. Hence, mistakenly cursing indicators that "lag" because they haven't learned to use their tools correctly.
Volume frequently lies. Price action frequently chops. Correct use of indicators helps clear up the picture.
Be happy to.
Certain indicators that lag (everything lags, even price action lags itself) tell us where momentum exists... up, down or sideways at the moment.
They also tell us in harmony with price action whether a change in direction or beginning of a directional move has likely taken place.
Most importantly, a body in motion tends to remain in motion. Someone made that a universal law, didn't they? Same law applies to price action. Newbies look to anticipate where price turns are. Pros seek confirmation of such turns, then trade in harmony with that direction until the next change comes along, one tick or twenty ES index points later.
Traders who don't yet understand that process simply don't know what they do not know. Hence, mistakenly cursing indicators that "lag" because they haven't learned to use their tools correctly.
Volume frequently lies. Price action frequently chops. Correct use of indicators helps clear up the picture.
