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Leading And Lagging Economic Indicators
Before trading any asset, you should get full information about the situation in the country. This includes the news that should be followed as a priority, as well as the forces affecting the national economy.
News in the Economic Calendar generally falls into the following categories:
News in the Economic Calendar generally falls into the following categories:
- Leading indicators
- Lagging indicators
- Coincident indicators
Leading indicators
The indicator’s name already gives us a clue of what is involved here. This category includes news that helps predict future changes in the economy. Any shifts warn us that positive or negative changes in national sectors are coming soon.
Lagging indicators
This type of indicator, unlike the previous one, shows what changes have already taken place in the economy. Due to it, traders confirm the strength of the market trends.
Coincident indicators
This indicator displays important data about the current economic situation. Traders get detailed information about current market trends, which allows them to adapt their strategy in time.