Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

lagging indicator

Are you frustrated with laggy indicators and false signals draining your trading confidence?
You’re not alone — and the solution is simpler than you think.

Leading indicators, not lagging ones, are the secret to timely entries, strong trend confirmation, and better trading consistency. Today, I’ll break down a powerful intraday strategy combining two real-time tools: SuperTrend and Trading The Channel (TASC 2025.05).

This method is designed for fast, reliable trades — ideal for highly volatile assets like Natural Gas Futures, crypto, indices, and large-cap stocks.


Why This Strategy Stands Out

Whether you’re a scalper or a short-term swing trader, this system helps you:

✅ Catch early entries
✅ Confirm the real trend strength
✅ Avoid getting trapped in sideways chop
✅ Lock in profits smartly with tight risk control

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📈 Chart Setup Overview

We’ll be using two core indicators in this setup:

1. SuperTrend (Settings: 10, hl2, 3)

  • A trend-following overlay that turns green in uptrends and red in downtrends.
  • Entry is triggered when price crosses and closes beyond the SuperTrend line.

2. Trading The Channel [TASC 2025.05]

  • A hybrid trend-momentum oscillator inspired by TASC magazine.
  • Helps you confirm breakouts, avoid false signals, and spot momentum shifts.
  • Color coding: Blue for bullish, Orange for bearish.
  • Bonus: Arrows appear for trend confirmation.

🛠️ How to Add These Indicators on TradingView

  1. Open TradingView.
  2. Click on Indicators.
  3. Search for:
    • “SuperTrend” (use the built-in version, set to 10, hl2, 3).
image-30-1024x204 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

4. “Trading The Channel” (community scripts or TASC library).

    image-31-1024x219 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

    5. Set your chart timeframe to 5-Min or 15-Min.


      🧠 How the Strategy Works

      The power of this strategy lies in dual confirmation:
      SuperTrend for trend direction + Trading The Channel for momentum validation.

      image-32-1024x372 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

      🟢 Long Setup (Buy Conditions)

      image-33-1024x505 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

      ✅ SuperTrend turns Green with a Buy Label.
      ✅ Green candle closes above the Trading Channel line.
      ✅ Trading Channel line flips orange with a Green Up Arrow.
      ✅ Bonus: Channel line rising above zero.

      🎯 Entry: Enter at the candle close when all conditions align.

      🛑 Stop Loss: Below the SuperTrend line or recent swing low.
      🏁 Target Profit: 1.5x to 2x your risk — or exit when SuperTrend flips Red or Channel turns Orange.


      🔴 Short Setup (Sell Conditions)

      image-34-1024x505 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

      ✅ SuperTrend turns Red with a Sell Label.
      ✅ Red candle closes below the SuperTrend line.
      ✅ Trading Channel line flips blue with a Red Down Arrow.
      ✅ Bonus: Channel line falling below zero.

      🎯 Entry: Enter at the candle close when all conditions align.

      🛑 Stop Loss: Above the SuperTrend resistance or last swing high.
      🏁 Target Profit: 1.5x to 2x your risk — or exit when SuperTrend flips Green or Channel turns Blue.


      💡 Pro Tips for Maximum Accuracy

      🔹 Time Your Trades:
      Only trade during high-volatility hours like London Open, NY Open, or after important news releases. Avoid dead zones.

      🔹 Avoid Ranging Markets:
      If SuperTrend flips too often or the Channel line flattens, skip the trade.

      🔹 Confluence with Support/Resistance:
      Mark key levels manually. Breakouts through these levels add extra strength to your setup.

      🔹 Add EMA 20 and EMA 50:

      • EMA 20 > EMA 50 → Prefer Buy Setups.
      • EMA 20 < EMA 50 → Prefer Sell Setups.

      📉 When Not to Use This Strategy

      • SuperTrend flips rapidly = sideways market.
      • Channel oscillator stays flat = no momentum.
      • Extremely low volume periods.
      • Right before big news events (EIA, Fed Meetings, etc.).

      📚 FAQ: Frequently Asked Questions

      ❓ Best Assets for This Strategy?
      Crypto (BTC, ETH), Commodities (Natural Gas, Oil), Indices (Nifty, Nasdaq), Large-cap stocks.

      ❓ Best Timeframe?

      • 5-Min and 15-Min for scalping.
      • 30-Min for short-term swing trades.

      ❓ Expected Trades Per Day?
      On active sessions, expect 3–6 high-probability trades.

      ❓ Can It Be Used for Options?
      Absolutely! Ideal for directional intraday or weekly options trading.


      🔧 Quick Tools & Settings Recap

      image-35-1024x423 Why Should You Always Choose Leading Indicators Over Lagging Ones in Trading?

      🗣️ Final Thoughts

      The SuperTrend + Trading The Channel strategy is a responsive, low-risk, high-reward system that offers clarity without overcomplication.
      If you’re serious about improving your intraday trading, this setup deserves a spot in your playbook.

      ✅ Remember: Discipline and patience > Any indicator.
      Always backtest first, trade small initially, and grow with consistency.


      🔗 Stay Connected


      ⚠️ Disclaimer

      This article is for educational purposes only. Trading involves significant risk and is not suitable for all investors. Always consult a licensed financial advisor before making trading decisions.

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