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Alternatives to ADX
- Thread starter traderkay
- Start date
Yes, I know all the "watch if it's increasing/decreasing, over/under 25/30 stuff". It just doesn't work very well for me. And please don't say VHF (it's even worse!
So, I'm eager to hear other ideas...ADX measures the strength of the trend. It does this quite reliably when the indicator is above 30 and has positive slope. If you see an ADX value of 40 or (rarely) 50 it is well worth your while to ride the trend, especially if you got in early. Be aware that ADX can exhibit divergence when the price is rising but the stock is being dumped.
try this:
abs(close - average(close)/standard deviation(close)
ie take the closing price and subtract from it the average closing price of x periods. Take the absolute value of this number and divide by the standard deviation of the closing price of x periods.
The higher the number, the stronger the trend.
abs(close - average(close)/standard deviation(close)
ie take the closing price and subtract from it the average closing price of x periods. Take the absolute value of this number and divide by the standard deviation of the closing price of x periods.
The higher the number, the stronger the trend.
Originally posted by zentrader
try this:
abs(close - average(close)/standard deviation(close)
Zentrader, as I understand, ABS(C-MovingAvg(C))/STDEV(C,X), right?
Then I have a question, the MovAvg can be used with a number of periods different than X right? Should it be greater than X? Less than X?
Originally posted by Shorteee
Hey does anyone have a mathematical formula that can be used as an indicator that is 100 % accurate. I need an indicator that works all the time nothing else will be acceptable in other words I need a Holy Grail system.
No such thing. If there was, it wouldn't be shared.
which of these are you using ADX for?
if its for the intraday gap, news, spike day-trading (hence scalping), then the delayed (multi-period trendline predictor) will not be as accurate as desired.
If its for a longer term, hence multi-multi-periods, then as a position trading indice, then it retains its worth.
The absolute best indicator for intraday trading remains "brain power analysis". It takes time to train this AI (and for some of us, our inteligence is truly "artificial") to wave patterns that are profitable. However, part of the make-up are these indicators such as ADX.
For example, take a 2min chart, 5min chart, 15min chart and 60min chart of the same security (irrespective of whatever it is), and then take a Tick chart (naturally this is less than 1min), depending on your processor and bandwidth speed, and you will see these patterns and do inteligent pattern recognition.
Perhaps this will help, and also, perhaps this will prevent this method from becoming "neutralized" as other indicators obviously have been...
Cheers
if its for the intraday gap, news, spike day-trading (hence scalping), then the delayed (multi-period trendline predictor) will not be as accurate as desired.
If its for a longer term, hence multi-multi-periods, then as a position trading indice, then it retains its worth.
The absolute best indicator for intraday trading remains "brain power analysis". It takes time to train this AI (and for some of us, our inteligence is truly "artificial") to wave patterns that are profitable. However, part of the make-up are these indicators such as ADX.
For example, take a 2min chart, 5min chart, 15min chart and 60min chart of the same security (irrespective of whatever it is), and then take a Tick chart (naturally this is less than 1min), depending on your processor and bandwidth speed, and you will see these patterns and do inteligent pattern recognition.
Perhaps this will help, and also, perhaps this will prevent this method from becoming "neutralized" as other indicators obviously have been...
Cheers