A lagging indicator is a type of technical analysis tool that reflects past price movements, helping traders confirm trends rather than predict future price action. These indicators, such as moving averages or the Relative Strength Index (RSI), are typically used to validate entry and exit points based on historical data. Since they follow market movements, lagging indicators are often employed in conjunction with leading indicators, which provide insights into potential future price changes. While they can be useful for confirming trends, traders should be cautious, as reliance solely on lagging indicators may lead to late entries or exits.