What most traders do when actively trading is to add a filter to their chart. The purpose of the filter is to weed out the weakest trade signals and focus on the best signals. Besides having a better hit rate it will also help them save commission. This filter is often a Lagging Indicator such as the Moving Average. Because it is a Lagging Indicator what better way to use it for trend following. It removes noise and helps the trader keep a picture on the overall picture. During an uptrend the trader will see a Leading Indicator change bias many times but the Moving Average will stay climbing. When the trader plots the Technical Indicator, in this case a Moving Average, he is well aware that it is lagging and that is why Lagging Indicators still have a place in trading. It is exactly this lagging function that the trader is looking for. The trader plots the Moving Average to help him identify the trend. They then decide price is in an uptrend and will then ignore all sell signals from whatever Leading Indicators the trader has plotted on their chart. When knowing how the Technical Indicators work, it is easier to combine it with other Technical Indicators to create a trading system, for example combining a Lagging Indicator with a Leading Indicator. In our next lesson we will look at how Leading Indicators are used in trading.