The indicator giving a buy signal before the new trend or reversal occurs is normally known as a leading indicator. You can experience several counterfeits when you are using Leading indicators. It is good to follow the leading indicators when you are talking about following the trend as the leading indicators predict the final results. But though it has some demerits. Placing a goal on a leading indicator will result in gaming and generate the wrong results. Leading indicator leads to the performance of lag measures; normally measures intermediate processes and activities. An example of the yield indicator is the bond yields. (more…)