Leading Indicators
A leading indicator moves in advance of price. They are essential tools for all traders in today’s market where stocks can move suddenly without warning. Leading indicators are able to detect subtle nuances of price and volume, and quantity of shares traded that indicate the stock price is building underlying energy before it
moves.
When you include leading indicators in your analysis, you will dramatically improve your potential profits as you will enter stocks earlier, ahead of strong price action, and gain higher profits.
Moving Averages are very popular indicators because they are easy to use and interpret and are available in every charting program, however, all moving averages lag. Indicator writers have been trying to reduce or eliminate the lag time in moving averages for decades with minimal success, which is because the basic formula averages price and in doing so, creates the inherent lag.
As a successful TechniTrader® student you will learn how to interpret and use leading indicators that will help you enter a stock prior to it moving up or down with velocity.
TechniTrader®, the educational division of Decisions Unlimited, Inc., is strictly an educational service for the serious investor and trader. It does not represent, nor is it sponsored by any vendor, provider, or broker. We are an independent educational service.
Copyright © 2007, Martha Stokes, C.M.T. & Howard Johnson. No part of this web site may be reproduced in any form without expressed written consent.

