Indicators
Technical indicators :leading -leading indicators are trying to gauge price momentum from relatively recent price action, these indicators tend to generate frequent buy and sell signals and are therefore normally used in ranging markets.
lagging -Lagging indicators on the other hand are created to give a picture of where the market has been, and therefore where it is likely to continue to go.they generate less trading signals than leading indicators.
The more sensitive the indicator the earlier you will catch the move, however the more false signals that will be given.
Moving Point average:
The simple moving average is the most basic of the moving averages and is calculated by taking the past x number of points averaging them, and then plotting the resulting line on a chart.
Critics of the simple moving average argue that it is too simple in the sense that it gives the same weight to each point in calculating the moving average. The problem with this it is argued is that the more recent data points deserve a greater weighting in the formula as they are more relevant to the future price action of the instrument.
posted by maxi @ 5:55 PM
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