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tradejack <trade_jack@xxxxxxxxx>
> you're not trading t-bonds without indicators. you're using pivots
> and fibo's, two of the oldest lagging indicators around. why
> lagging? because as you rightly pointed out in prior posts, all
> common indicators are lagging because they are based on past price
> action, including those indicators that you say you use.
OK, I'm confused. How can pivots and fibo's be considered lagging
indicators, since they predict AHEAD of time where the price is
likely to bounce? (How accurately they predict it is another issue,
but they do predict ahead of time.)
Yes, sure, they're based on past price action. So what? "Lagging
indicators" means the information from the indicator *lags* the real
price movement. E.g. a typical moving average lags the price
movement because the MA doesn't turn until several bars after the
price turns.
If anything, pivots and fibo's *lead* the price movement, because
they're established before the price ever reaches that level. They
wouldn't be "lagging" unless you computed the pivot/fibo level AFTER
the price bounced there.
Personally I don't think it makes much sense to say they lead OR lag,
since they're fixed values during the time the price approaches the
area of interest, but leading makes more sense to me than lagging.
Gary
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