Leading Indicators as Opposed to Lagging Indicators

seven

Newbie
1 0
i use times series forecast and macd on strategy runner one minute chart for my indicators high strike rate
times series is set at at 5 and first two of macd is set at half the default
eminis only havent tried it on forex yet
seven
 

mscir

Newbie
2 0
Interesting discussion so far. Splitlink got me curious about what people are watching every day.

If anyone's willing to post I'd like to know you have your screen set up. I use candle or bar for price, SMA(5), SMA(10), SMA(50) (just to see if I can make anything useful out of watching them), PSAR, RSI(14) and MACD (12,26,9).
 

Rooster34

Well-known member
333 66
I follow that entirely, Brambly One, but in my mind there's possibly some circularity in Goslin's argument, because it seems to me that he's inferring that the price will go up because the average goes up, whereas in reality the average will only go up because (if) the price has gone up. However, it's late and I'm more tired than usual and I concede that I may not be doing him justice, and I may not be doing you justice, and I may not even be doing DB justice (but he's probably used to that).


My take on dropping off the numbers is not that it affects the price but it draws your attention to what the price has been doing the last couple days and takes your eyes off the indicator. If it's been in a slow downtrend and then starts popping down and you focus on the indicator and not the recent price then you might miss a good opportunity to get in.

Just my take on it.
 

sopodo

Active member
135 0
I have always used candlesticks in my day trading of the emini s&p 500, I am only in a simulator still, will be going live soon. I would like to use indicators and have been looking into using these in my simulator. But I am a little lost. I have read tons about them in these past months of learning to trade.

In my simulator when I choose to add a moving average it asks me from a drop down box to choose from simple, weighted and exponential. When I choose for instance simple, then it asks me the day number. I read that day traders trading the emini s&p 500 like to use 4, 9 and 18 day moving averages. So I select those 3 figures. Then press okay and it loads up on my chart. But I now only see 2 lines, one is green and the other is red. Then I choose the macd and that enters another line on my chart which is blue. I use a candlestick chart on a 1 minute tick. The moving average lines do not seem in line with the candlesticks and rather too far apart which does not seem accurate, what's up with this?

If anyone can please help

Many thanks in advance
 

Ambrose Ackroyd

Senior member
2,879 287
I am personally wary of most indicators but the other day I was looking around on'tinternet for a way to filter out bad trades during periods of consolidation or ranging action.

I found the so called Squeeze-Break indicator which can be downloaded for free at.....

http://codebase.mql4.com/5520

I have tried it for a couple of days and have had a good measure of success in using it.

This may of course just be coincidence but I was wondering if anyone else has used this and if so, what degree of success you are getting.

If anyone has played around with the settings and found an optimal situation, I would also be interested to hear about it.
 

Pat494

Legendary member
14,621 1,578
Has much changed ?
I keep expecting technology to finally get to grips with this problem and in time I am sure it will.
In fact I have invested in neuroshell. Preliminary results look promising but far from certain. Adaptive Modeler is another high tech possibility.

P.S. Wonder if El Splitto is still alive and kicking after another 5 years ?
 

Fugazsy

Veteren member
3,661 677
price action could be a leading indicator and the 20 ema can give some indication combined with it where price will be leading next.
 

Solas0077

Active member
236 14
All indicators of price lag price. Adaptive Modeller looks like a curve-fitting tool. Any other price action tools out there?
 

Forexmospherian

Legendary member
39,928 3,301
Of course there are "leading indicators " - but like any indicator - lagging or leading - they will never be 100% correct

For me with Forex trading - main leading indicators are divergence of oscillators - trendlines - S & R interim levels ( known in advance ) and my own favourite linear regression price structure off a tick or one min chart combined with time of the hour and session and day.

Are they accurate - yes over 65 -70% probability and even more if experienced and the market is being kind.

Price action on its own lags - yes its partly leading on a one min chart - but session price structure and time of hour out trump it ;-)

Good Trading

F
 
 
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