Alternatives to ADX

Thanks for that clarification Mrbud. Because I always thought there was this magical formula that works 100% of the time and spits out just winning trades.
 
tradekay

there are a few books around you might consider worth reading (if you haven't already), Martin Pring on Market Momentum being one of them, Compleat Daytrader another.

I have been pretty successful with custom, home-made indicators. They are based on stochastics over RSI and ROC. I use different indicators depending on the market. If the trend is strong and clear, I use one group of indicators based on MAs, if we are trading within a range, and there's no clear direction in the market, I use my custom oscillators.

I find however that indicators are only decision support tools. Old fashioned pattern recognition, support/resistance, consolidations/breakouts, tape reading, etc, work for me regardless market conditions.

My best wishes
Jaba
 
CSI - Commodity Shortterm Index is also recommended on a montage of 3 or 4 indicators. However, the book doesn't clearly draw the connection between this recommendation's reliance upon there being a correlation between the underlying security you're watching and sufficient representation in one of the SIF's (stock index futures).

Simply put, if you're watching JCLS (johhny come lately stock) and expect to see the SPX (S&P 500 or S&P 100) move up and the stock move up, then you're "wishing", and even worse, betting your money on those wishes.

However, if you use one of the top 10 highest percentage members in one of those indexes, in this same scenario, then you're doing smart trading. Hence "corelation" is the underlying premise behind a vast majority of these "combination charting" suggestions.

Before you trade, look both ways across the street!
 
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