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At 06:36 PM 3/24/98 -0500, Paul Cote wrote:
>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...
>
Paul,
Volume leads price,
Pete
petena9090@xxxxxxxxxxxxxx
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