What’s the Best Leading Technical Indicator? We all know that momentum indicators tend to be lagging indicators. What indicators do forex leading technical indicators use for leading indicators?
A leading indicator would be one that signaled the direction of price movement at least 1-2 bars before it happens. From what I’ve personally gathered the list would go Stochastics, RSI, CCI, Fractals used in conjunction with the Alligator Indicator. Perhaps you could narrow those down to a top 2 or 3 since you have also got to have some sort of lagging indicator as well. I’ve been experimenting with a system that uses CCI as the leading indicator and Stochastics to confirm. The cool thing about it is that it can nail those big move bars, instead of kicking in to trade the aftermath. The not so cool thing is sometimes, it’s wrong, but I’ve been working on improving the order management to help in that case. Personally I have the most experience with the alligator although I had not realized the effectiveness of it combined with the fractals and then also the Stochastics.
Until now I really don’t understand how to filter bad trades by using AO and alligator. For such method as twin peak, saucer, AO cross do we really need alligator as the reference? AO zero line the price is still below alligator can I take the trade even the hit point is under the alligator? I would surely go for RSI and Stochastic.
Fibonacci which is pretty much the same thing. Since writing that I have developed a website that goes into much detail about using the alligator a well as the other indicators that I use and trades that I make. Check it out here for more details. The alligator that I use is completely different from the Bill William’s one.
For the purposes of this forum though, and to answer your question, there is always going to be those false signals that come up with any leading indicator, but it’s less likely to occur when you use them in conjunction with a lagging indicator. I don’t even use the fractals part, its just something I’ve heard works well in conjunction with the alligator. If the fundamentals and technicals don’t agree, stick to the technicals but use smaller lots and strict money management. If the fundamentals and technicals do agree, go for it! I agree and thats all I use. Kept me in the game for several years now.
R ,that have been the most consistent in predicting short term price movement-IMO. I always did love tinkering with Indicators-it helped distract me from the crippling losses I sustained while using them. Overall, I have to agree that PA and Fibonacci lines are the most reliable. There isn’t an averages-based indicator that I’ve tried in months of software development and back testing that I haven’t seen provide false signals. One interesting thing I have discovered is that in past years, some indicators were very good indeed, but no longer. Possibly, the expansion of computer-based technical indicators and retail Forex trading has fundamentally altered market dynamics to the point that older statistical methods just aren’t what they used to be, so far as market prediction is concerned. Good points guys, and I just want to expand on those points.
I didn’t mean to give the wrong impression that I use loads of technical indicators in my trading strategy. These are really what I mean when I use that broad term Indicators. You must log in or sign up to post here. Need Reviews for Our Expert Advisor! Hello everyone, I’m a newbie and glad to have found Forex Peace Army!
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Have you ever wondered what technical trading indicators to use in your forex trading? If you are, then this article will surely appeal to you. When you decide on your technical analysis trading strategy, you should carefully choose your trading weapons! The technical analysis indicators, we will be discussing could be leading or lagging based on the time at which they provide a signal. Leading indicators are also called Oscillators. Lagging indicators are typically Trend-Confirming Indicators. Lagging indicators give confirmation signals after the actual occurrence of the event.