Leading Indicators

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What are good price based leading indicators that have stood the tests of time.

Am told %R is one but does not give smooth signals. What else is out there. Cheers!

 

[rateesquad]

Inverted Yield curve, it usually predicts recession coming in 6+ months. LOL

 

[brownsfan019]

Leading indicators - you mean indicators that consistently predict the future based on past price movements?

 

[toc]

rather those that turn earlier than the price

 

[clacy]

Now that is exactly what I need. A reliable LEADING indicator that will give my very accurate signals ahead of time.

I wish I would have thought of that sooner

 

[Marsupilami]

You can regard chart patterns as leading indicators ( at least they are not lagging ).

 

[NihabaAshi]

Quote from toc:

What are good price based leading indicators that have stood the tests of time...

* Other Key Markets
* Market Seasonal Tendencies
* Intraday Seasonal Tendencies
* Key Economic Reports
* Key Regular Schedule Market Events
* Market Breadth Indices
* Insider Information (illegal)

All the above will lead the market for futures traders in comparison to traditional indicators (ex. rsi, macd, cci, %r et cetera).

All the above are usually ignored by most beginner traders while most veteran profitable traders use them as a key aspect of their trading plan.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

 

[Bearbelly]

I think that oscillators can often be leading indicators of a reversal by showing a change of momentum through divergence which is not always apparent looking at price alone.

 

[brownsfan019]

Quote from toc:

rather those that turn earlier than the price

Oh, now I understand - you would like an indicator like RSI or Stochastics, but one that turns sooner than price does and consistently predicts the correct direction (even though the indicator itself is based on past prices)?

... note ... trying to predict the future price movement based on the past is not easy to do consistently. Some indicators work fine, if you trade them consistently. The problem is too many traders give up on something b/c it had a bad day or week. Some days/weeks divergences work well, other times they get beat up. Sometimes trend trading works, sometimes it doesn't. To my knowledge we have yet to find an indicator that consistently predicts the future. And if it was out there, so many people would use it that it might lose it's power. So, my guess is that if it's out there, you won't find it on a message board.

 

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'Oh, now I understand - you would like an indicator like RSI or Stochastics, but one that turns sooner than price does and consistently predicts the correct direction (even though the indicator itself is based on past prices)?'

it does not have to be consistent, but due to the fact that it is a leading indicator would trigger lot other mechanisms that help in taking more confident decision.