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Momentum leads price
Bill Eykyn wrote:
>
> >
> >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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