Predictive Lag is the length of time needed to achieve a forecast or mathematical prediction after the interval of time that forecast was generated.
Methods are available to measure or estimate the predictive lag. This writer can measure predictive lag.
Primary Lag
Primary Lag is the length of time it takes for secondary growth to take place after the interval of time the primary growth was generated.
Predictive Lag and Primary Lag is the same length of time. Depending upon where one stands in the process determines if the lag was predictive or primary.
Lag Measurement
A method to measure lag in the investment market is to add 2, 3, or 4 points on to the recent closing price and see how long it takes for the forecast to happen.
This will give one and idea of what growth characteristics the investment market currently are.
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