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Trading glossary · indicators

lag

When a helper line reacts late, because it needs several candles before it changes.

The fuller meaning

The delay between a price move and an indicator's response, because most indicators average several candles of data. Lag makes moving averages, crossovers and MACD late at turns and prone to whipsaws in ranges; shorter settings lag less but give more false signals.

lag.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence