Leading Indicators as Opposed to Lagging Indicators

SOCRATES

Veteren member
4,966 136
Now that you have achieved that, try using a Mark 1 Eyeball, which is akin to a patient finally recovered and being able to walk without his crutches. I stongly recommend it.
 

TheBramble

Legendary member
8,394 1,170
ottos said:
To all who were referring to my post about trendlines.

You are right if trendlines are used in traditional way, however after studying it and getting mentored about using them as leading indicator , I now believe that trendlines are the the best leading indicator I know about .
While trendlines are a vital aspect of TA it's the first time I've seen them referred to as a 'leading' indicator.

The indicator provides guidance to potential future price, but to ascribe 'leading' is I feel erroneous, unless you have information outside the ken of most traders who use them.

A lagging indicator is 100% correct in it's re-presentation (delib. punc.) of what has happened.

A 'leading' indicator (if such a term is used) would imply 100% correctness in what was about to happen.
 

ottos

Junior member
29 0
TheBramble said:
While trendlines are a vital aspect of TA it's the first time I've seen them referred to as a 'leading' indicator.

The indicator provides guidance to potential future price, but to ascribe 'leading' is I feel erroneous, unless you have information outside the ken of most traders who use them.

A lagging indicator is 100% correct in it's re-presentation (delib. punc.) of what has happened.

A 'leading' indicator (if such a term is used) would imply 100% correctness in what was about to happen.
What I've meant was that trendlines can show you where the price is going and where is most likely spot for price reversal ahead of time .
There in nothing 100% in trading .
 

Roberto

Experienced member
1,073 19
Everyone is using terminology differently in this discussion. It happens very often here, but not normally quite as significantly as in this thread ...

Splitlink said:
an ma does illustrate the trend well ...
It does indeed; because that's what it is, really. A moving average is a moving trendline.

Splitlink said:
However, with an average line like this, who needs trendlines?
Who indeed? An average _is_ a trendline, but in my language that doesn't make either of them "leading indicators"! :)
 

Splitlink

Legendary member
10,850 1,234
ottos said:
To all who were referring to my post about trendlines.

You are right if trendlines are used in traditional way, however after studying it and getting mentored about using them as leading indicator , I now believe that trendlines are the the best leading indicator I know about .

Good luck to you if you have found an edge that helps you to trade well. All of of us are different. That's what makes the market. But it is an indicator drawn by you and using your criteria, which may not be the same as for others. Of course, that can be said for all trading decisions, using indicators or not.

Split
 

RUDEBOY

Experienced member
1,157 6
I agree, although i also use volume. I think trading should be simplistic, master the art of price only and the trading world should be your oyster, if you pardon the pun. But if somethings worth doing, it's worth oney.
 

RUDEBOY

Experienced member
1,157 6
UPS, missed a few words and letters there, but i think you get the drift.
 

Splitlink

Legendary member
10,850 1,234
RUDEBOY said:
Does anybody here trade price only?

I think some trade just by reading the ticker. I'm not that confident, I use a chart but no indicators
or volume except a longterm average for trend. Socrates will probably say that I don't even need that but I'm not that far ahead, yet!

Split
 

RUDEBOY

Experienced member
1,157 6
Just only ever reading ticker, i would have thought you would have to be like Dustin Hoffman in Rainman.
 

SOCRATES

Veteren member
4,966 136
Splitlink said:
I think some trade just by reading the ticker. I'm not that confident, I use a chart but no indicators
or volume except a longterm average for trend. Socrates will probably say that I don't even need that but I'm not that far ahead, yet!

Split
I will explain more when I have time.
 

SOCRATES

Veteren member
4,966 136
RUDEBOY said:
Just only ever reading ticker, i would have thought you would have to be like Dustin Hoffman in Rainman.
Right on the button ! I will explain in due course, when I have time, wife calling....
 
 
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