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Definition of a leading indicator: An indicator that precedes price
therefore predicting price somewhere in the future. The only type indicator
I think that can do this is price of one market to another say the S&P to a
stock thats known to follow the S&P. Your claiming the VEL has zero lag I'm
not disagreeing but thats pretty impressive indeed, do mean to say has less
lag than most.
Robert
10/13/98 -0700, Trade Jack wrote:
>you claim momentum and acceleration are lagging indicators. before i
>disagree, what is your definition of "leading" indicators? according
>to what i've read on this and similar threads, nothing really
>qualifies as a "leading" indicator, including regression analysis
>"forecasts."
>
>and why don't you consider momemtum and velocity as leading
>indicators? i've constructed a momentum indicator with zero lag.
>jurik constructed his "vel" or (vel = velocity = momentum) with zero
>lag. next if you look at price and indicator divergences, then it
>becomes a leading indicator, at least in my mind.
>
>momentum and acceleration are only system / trading methodology
>building "blocks." i use other "blocks" to confirm the momentum
>changes. once i have a convergence of these "blocks," i generally buy
>into falling price and sell into rising price with fairly low risk.
>
>TJ
>
>buy stocks when they're low and sell them when they're high. if
>they're not low, then don't buy them. -- will rogers
>
>
>---Allan Kaminsky wrote:
>There was some earlier discussion on the list about Momentum and
>Acceleration being leading indicators. This isn't true.
>
>
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