AVERAGE DIRECTIONAL INDEX - ADX

   This is one of my most used and valuable trading tools.
I see where we have available a group of "Directional Movement" Indicators - however, I would like to see a more conventional indicator where we have the basic 3 lines available in the one set up.
1. The ADX line which measures the strength of the trend - rising, indicating the strength of the trend is increasing ( more directional) while a falling line shows the trend is weakening ( less directional)
2. The plus D1 - showing positive upward directional movement.
3. The minus D1 - showing negative downward directional movement.
TRADING
To set up we look for the plus D1 to cross over as a precondition and then to trade it when the ADX line crosses up and over the ADX level - here we should be able to set levels between "0" and "50" with an ADX level line at 25 ( to be variable). Whilst it is common to use time periods of 13 or 14 - this feature should also be variable
A weekly system should also be available - using compressed data.As usual line colours to be available to assist in easier interpretation. If it is possible to show a suitable "buy" signal when above trading requirements are met - it could then become a most valuable scan tool.
I did look at the "combination" Directional Movement Indicator - but found it very difficult to interpret.

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Rhubarb Members Profile Send Private Message Find Members Posts Add to Buddy List Newbie Joined: 11 Sep 2004 Location: Australia Posts: 10	Post Options Post Reply Quote Rhubarb Report Post Quote Reply Topic: AVERAGE DIRECTIONAL INDEX - ADX Posted: 14 Sep 2004 at 3:21pm
	This is one of my most used and valuable trading tools. I see where we have available a group of "Directional Movement" Indicators - however, I would like to see a more conventional indicator where we have the basic 3 lines available in the one set up. 1. The ADX line which measures the strength of the trend - rising, indicating the strength of the trend is increasing ( more directional) while a falling line shows the trend is weakening ( less directional) 2. The plus D1 - showing positive upward directional movement. 3. The minus D1 - showing negative downward directional movement. TRADING To set up we look for the plus D1 to cross over as a precondition and then to trade it when the ADX line crosses up and over the ADX level - here we should be able to set levels between "0" and "50" with an ADX level line at 25 ( to be variable). Whilst it is common to use time periods of 13 or 14 - this feature should also be variable A weekly system should also be available - using compressed data.As usual line colours to be available to assist in easier interpretation. If it is possible to show a suitable "buy" signal when above trading requirements are met - it could then become a most valuable scan tool. I did look at the "combination" Directional Movement Indicator - but found it very difficult to interpret.
	Rhubarb 4 All

Brendon Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List BullCharts Staff Joined: 10 Sep 2004 Location: Australia Posts: 126	Post Options Post Reply Quote Brendon Report Post Quote Reply Posted: 14 Sep 2004 at 6:43pm
	Ric, You are able to modify the default plots that appear. When inserting Directional Movement all columns - click on Next, then select the Styles tab. Tick the various plots that you wish to display. You could try creating a new Indicator using the Builder. Here is a basic starting point of your idea. Time periods and signals can be added to the Bullscript as well. [name=+DI; color=Green] pdi; [name=-DI; color=Blue] mdi; [name=ADX; color=Red] adx; Edited by Peter

SimonSavva Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 15 Sep 2004 Posts: 84	Post Options Post Reply Quote SimonSavva Report Post Quote Reply Posted: 25 Sep 2004 at 11:38am
	Man, this ADX. I've always been interested in, but it's always so complex. If anyone can direct me to a very concise discription and some examples, I'd be much appreciative. Edited by SimonSavva

Seahorse Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 11 Sep 2004 Location: Australia Posts: 35	Post Options Post Reply Quote Seahorse Report Post Quote Reply Posted: 25 Sep 2004 at 12:10pm
	Go to your local newsagency and purchase a copy of....... Issue4 CHARTING "PowerStocks". From the publishers of Shares Magazine. In this magazine Colin Nicholson describes how to use a host of indicators, including the ADX. Cost is $9.95...cheap!!!!
	My Reality Check bounced

SimonSavva Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 15 Sep 2004 Posts: 84	Post Options Post Reply Quote SimonSavva Report Post Quote Reply Posted: 26 Sep 2004 at 8:23pm
	Got myself a copy. BRILLIANT Explanation!! Thankyou Seahorse

SimonSavva Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 15 Sep 2004 Posts: 84	Post Options Post Reply Quote SimonSavva Report Post Quote Reply Posted: 07 Oct 2004 at 9:14am
	Rhubarb, did you make the conventional indicator? If so I'd love a copy.

davkell Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 01 Dec 2004 Location: Australia Posts: 47	Post Options Post Reply Quote davkell Report Post Quote Reply Posted: 07 Dec 2004 at 9:14pm
	For a good explanation of ADX, I'd recommend Alexander Elder's book, "Trading For A Living". It has a very good description of the make-up of ADX and a system for trading it. Besides, if you're trading, you should have this book anyway, it's invaluable! (Hope you get this reply to your post, I'm a newbie to Bullcharts, currently enjoying my 14day trial.)
	"Trade Your Way To Financial Freedom."