Minggu, 24 Agustus 2008

Trending prices versus trading prices

There have been several trading systems and indicators developed that determine if prices are trending or trading. The approach is that you should use lagging indicators during trending markets and leading indicators during trading markets. While it is relatively easy to determine if prices are trending or trading, it is extremely difficult to know if prices will trend or trade in the future. [See Figure 33.]
Figure 33