On the utility of lagging indicators in CFD trading
It's always fascinating to see how many retail traders, especially those new to CFDs, cling to lagging indicators as if they're some sort of holy grail. We've all been there, cross-referencing three different moving averages, an RSI, and maybe a stochastic, only to find the market's already made its move by the time all your lines confirm. It's like checking the rearview mirror to navigate a blind corner.
While I get the comfort in 'confirmation,' doesn't relying on these tools just make you perpetually late to the party? Take something like $LDO, which is currently sitting around $0.291. If you're waiting for the 50-period MA to cross the 200-period MA on a daily chart, you've probably missed the best part of the move and the retracement. Price action, volume, and understanding market structure feel like the actual drivers, with indicators at best providing a secondary glance. Am I being too dismissive? Change my mind.
That's a very apt analogy. While lagging indicators are certainly not predictive, do you think there's any value at all in using them, perhaps for confirming trends or for understanding past volatility, even if it's not for direct entry/exit signals?