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<<snip>>
Leading indicators (attempt to) tell you where prices
will go (or turn/find support/resistance) BEFORE they
get there. Leading indicators are predictive (though not
reliable for mechanical/blind trading).
<<snip>>
Why not? You practically defined a situation below. You laid the ground rules.
That's half the job.
Now it can be written as code and tested. If it holds up in testing then it's
valid.
If it doesn't hold up, you may have left out something you normally add to the
mix,
in which case, you would define it, add it to the mix, and test it again.
dbs
<<snip>>
Also, leading
indicators are valuable in deciding when to fade a
common lagging indicator. For example, you know that
the blind followers of the common Stochastic 25/75 will
be on the wrong side of the market on the first false
signal that Stoch gives near major Fibonacci
support/resistance (they will drive price right to a
Fib level, where your entry order is, then they will be
scrambling to reverse just as you are taking a profit)....
<<snip>>
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