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At 05:21 PM 3/24/98 EST, CalaxCorp wrote:
>In a message dated 98-03-24 08:00:59 EST, t-bondtrader@xxxxxxxxxxxxx writes:
>
><< Subj: GEN: All indicators lag, don't they?
>
> Question: "Except for price action, don't all indicators lag?"
>
> Bill
> >>
>
>Bill and RTs,
>I have heard of the term "leading indicators" before.
>So is there not such a thing?
>Could someone give me examples of "leading indicators" if they exist?
>And how they can be used?
>
>WilliamW
>
>
Hello RTs.
I was tempted to jump in on this earlier, but I'm no
longer clear as to whether this discussion belongs on the
email list or on the web pages. Forgive me if I get it wrong.
There are a category of indicators called LEADING INDICATORS,
which attempt to tell you about future price action rather than
past price action.
My favorite of course is the Fibonacci Ratio...
I also use some price patterns which tend to predict future
price action, combine the two, and your odds are increased.
There are others, but since I have found what works
for me, I've stopped looking.
Predicting the future is tougher than predicting the past,
so leading indicators have a tough time being correct
100% of the time... Fibonacci in particular (in my
experience) requires more than a mathematical formula,
it requires human interpretation. This could account
for the relative unpopularity of leading indicators?
Best wishes,
-Neal.
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