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Ranking of indicators
- Thread starter lojze
- Start date
To find Up & down trending stocks :
ADX & +DMI , -DMI
ADX measures the strength of a trend and directional movement the direction * = up, - = down.
ADX > 35 and - DMI > + DMI = strong downtrend
ADX >35 and +DMI > - DMI strong uptrend
see also
http://www.equis.com/free/taaz/index.html
and
http://stockcharts.com/education/What/IndicatorAnalysis/indic_ADX.html
ADX & +DMI , -DMI
ADX measures the strength of a trend and directional movement the direction * = up, - = down.
ADX > 35 and - DMI > + DMI = strong downtrend
ADX >35 and +DMI > - DMI strong uptrend
see also
http://www.equis.com/free/taaz/index.html
and
http://stockcharts.com/education/What/IndicatorAnalysis/indic_ADX.html
What is this indicator IMO?
Originally posted by Privateer
To find Up & down trending stocks :
ADX & +DMI , -DMI
ADX measures the strength of a trend and directional movement the direction * = up, - = down.
How good are ADX and DMI for daytrading compared to scalping?
In principle there shouldn't be much difference, but anyway.
Lojze
I use RSI (Relative Strength index) quite often:
RSI value above 70 usually shows that the security is overbought and the price is likely to fall down.
RSI value below 30 usually shows that the security is oversold and a reverse trend may be expected.
http://www.quotelinks.com/technical/rsi.html
TradingBoy
RSI value above 70 usually shows that the security is overbought and the price is likely to fall down.
RSI value below 30 usually shows that the security is oversold and a reverse trend may be expected.
http://www.quotelinks.com/technical/rsi.html
TradingBoy
In my experience, all oscillators work much better on the daily charts than they do on intraday charts. They need a larger sample of data to give good signals. They are useless when using bars smaller than 5 minutes, in my experience anyway.
Originally posted by lojze
How good are ADX and DMI for daytrading compared to scalping?
In principle there shouldn't be much difference, but anyway.
Lojze
What has daytrading & scalping to do with searching for stocks stocks in up or down trends ? ( initial question - see above )
ADX and DMI simply determines whether a stock is in a trend, how strong this trend is and what direction it has - given on the pre-set length of periods.
However, as with many indicators, it's lagging, so I see not much use for it in fast daytrading, let alone scalping.
Some people may consider to trade the crossovers of +DI and -DI - on a longerterm chart, say 5 minutes but, if you're in the market for an 1/8 or a 1/4 , I'd say watch the tape , T&S, the orderbook ( Nasdaq L2 ) and that's about it.
see also chart below