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"In our regular talks with other traders, we have found that more of
them use momentum than almost any other tool, except perhaps moving
averages. Momentum isn't always used as their primary study, but the
traders monitor it closely and use it with other technical studies to
arrive at more timely trading decisions. Among the many reasons for
the popularity of momentum are its simplicity, its versatility, and
the fact that it is considered to be a rare "lead indicator." Rather
than merely reacting to the direction of prices, momentum can change
directions before prices change direction. Very few technical studies
can provide a trader with this valuable lead factor."
from "Technical Traders Guide To Computer Analysis Of The Futures
Market" by Charles LeBeau and David W. Lucas, 1992, p. 77.
could of written the above myself. in fact, i did tonight.
TJ
welcome to the asylum, mate
---CRLeBeau@xxxxxxx wrote:
Of course indicators lag. They are derivatives of price. You want a
lead indicator then go buy a crystal ball for Pete's sake.
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