Timing characteristics and trade-offs — earlier is less certain, later is less timely.
| Concept | Explanation | |---|---| | Leading | Attempts to identify a possible change before it is clearly established. Divergence and sentiment extremes are common examples. | | Coincident | Changes at roughly the same time as current market behavior. Price breakouts and volume expansion are often coincident. | | Lagging | Confirms a move after it has developed. Long-term moving-average crossovers are common examples. |
Earlier signals are usually less certain; later confirmation is usually more reliable but sacrifices timeliness. No category is universally superior.