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>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
For me, the term "leading indicators" is a misnomer. You will have noticed
that none of the answers and follow-ups to my original post have come up
with an indicator that leads, rather than lags. I do not believe that a
leading indicator exists. Just think about it logically, if someone had an
indicator which showed precisely where the market was headed, he or she
would be a millioniare and the indicator would never, ever be on the market
for the likes of you and me.
I am sure some indicators apparently point the way (based on X number of
bars back), but whether the market is likely to continue even for one bar
more on that course, is pure conjecture. In fact, it is probably worse
than a flip of the coin, because that says it goes up or it goes down and,
of course, most of the time it goes sideways... and we ain't got a three
dimensional coin!
Price action indicates some; Fibonacci retracements indicate some; volume
indicates some; and any other action that takes place right at the leading
edge, indicates some, but that vast array of so-called 'technical analysis'
indicators to be found in all the leading charting packages will just fool
some while they indicate none.
Face it, you just gotta learn to read the tape, like Larry Livermore did -
only you gotta computer...
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