To be honest you need to go to stockcharts.com and look at all their TA stuff, its free and gives you all the info you need like discriptions and proper usage. When i started out i didnt ask questions i read everything on the internet i could find plus bought a stack of books. You need to know how ALL of the indicators work in you particular software package, whether you use them or not. I found about three or four from each group of indicators and ocsillators for a total of about 12 and knocked one off the list at a time untill i had one from each catagory. first use multiple monitors to watch different time frames MACD and full STO are really good but if you dont understand full STO or slow then it isnt going to help
try predicting tommorrows headlines today. the past and future meet to create the present. its similar to knowing what the ending of a movie will be like as it starts out. Certain themes are constant in the movie industry. Thus that becomes the edge. so if you know the themes present historically, and you know present conditions, you can asses present conditions to come out with different probability streams. this is the only leading indicator i try to develop.
==================== Exactly Nazz. And to Al-trader, yes you may most certainly use ma as a leading indicator , the way i worded it -quote''% above 50dma''unquote . The way its done, use lots of data; price seldom gets a certain '''% above 50dma''[leading, so if you use it as leading indicator [price] maybe far away from benchmark 50dma]] To amplify NazzdaQQQ's remark; 2001 Stock Traders Almanac, by Hirsch If you cant get that one get any year [2005.2006,2007] Stock Traders Almanac, by Hirsch.
There is a reasonably detailed description of technical analysis leading and lagging indicators and what they are best suited to in the following wiki entries: http://timetotrade.eu/wiki/index.php/Lagging_Indicators http://timetotrade.eu/wiki/index.php/Leading_Indicators
I would only use indicators to confirm an entry after the fact. What may be more helpful is to identify support/resistance zones and then watch price action as it approaches and what it does there.
Primary is PREM/DISC to fair value on the emini's. Then trade the "lagging" baskets...just a small percentage of indicators required to make good entries and exits. (Peer, sector, overall market, paired stock, things like TICK are crucial (leads turnarounds well) as well, pivot points....I could go on and on...all part of being a trader)... Don
I agree with you Ezekiel. My personal preference is to look for equities at support and resistance levels or trend lines and then use technical indicators to determine if the support/resistance level or trend line is going to hold. Some educational screencasts/videos on this topic: http://timetotrade.eu/wiki/index.php/Education
Jack says YM leads ES and volume leads price. Go here: http://www.elitetrader.com/vb/showthread.php?threadid=83604 and try it. They guarantee it. With YOUR money.