Having an understanding of a particular indicator, especially if it has been applied as a strong basis for your trading strategy is important. Knowing if it is a, Leading, Lagging or momentum indicator and an understanding of it's logic will provide you with more confidence in the indicator. Also what it should be used for.
This is just one link to a resource for understanding indicators and overlays. I would highly recommend it.
http://www.stockcharts.com/education...sis/index.html
This is just one link to a resource for understanding indicators and overlays. I would highly recommend it.
http://www.stockcharts.com/education...sis/index.html