My favorite indicator, other than the combination of price and volume, is definitely the MACD. I’ve studied it for years and I use it as a very important momentum indicator in my trading strategy. It’s mostly a lagging indicator as it uses prior closing prices to determine the difference between two moving averages. But it also provides us a predictive benefit as price momentum begins to slow before we actually see prices deteriorate. As an example, let’s look at the chart of Oclaro (OCLR):