ADX Indicator

I never heard of a negative adx.....

Quote from rgelite:

Here's one guideline I recall reading for a 14 period ADX.

Remember, it's just a guideline; if trading were this simple we'd all have taken each other's money long ago. That being said, I'm looking to get yours. Really. :p Never forget that.

So take this with a grain of salt, as with everything else you read, and find what really works in a way you can trust.

ADX Direction Usage
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0-15 ... Up or Dn ... Range, use oscillators
16-20 .. Up .......... Trend - use trend following indicators
21-40 .. Up .......... Ditto
40+ ..................... Be prepared for trend to end
40-25 .. Dn ........... De-trending, use oscillators
24-0 ... Dn ........... Non-trending, use oscillators
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If someone has found a way to use a particular indicator or strategy EVEN IF YOU CAN'T USE IT, more power to that person. The bottom line is profit / results, and there are many ways to achieve profit / results.

I had a similar "conversation" with people about software recently. Again, WHATEVER WORKS for a particular person is what matters.

Peace!



Quote from LongShot:

formika, i wish i had a nickle for every time i heard that claim. :)
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I think where indicators help is in aiding traders visualize whats going on in the market. The ADX for instance will give you confidence that a market is trending or not. But at the end of the day Price action is king.
 
Quote from LongShot:

ADX? useless, completely useless. :0/
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Its inventor gave up on it and went into another line of business. He peddles now "delta"- stuff, some kind of esoteric mumbo-jumbo.
 
I like using ADX for swingtrades, but not daytrading (I primarily use time & sales, volume, sector percent change, 2d hi/low breakouts for daytrades) ...

Here's the method I've developed, fwiw:

http://www.esignalcentral.com/learning/likepro/strategy/volume/default.asp

Primarily I use ADX to help give decision support beyond a SMA support for increasing volatility at time of entry, in addition to volume. It's not a holy grail, but is one of a handful of indicators that's useful, to give support to "whether or not the stock's volatility" is heating up. Then of course I like to add volume etc to avoid getting in on exhausted patterns etc.


ken
 
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