Well, I actually only use the ADX, and don't bother to look at +/-DI. I think in the book, especially Chuck LeBeau's book, there are all these ways to use ADX along with +/-DI to produce signals to enter and exit.
Given your name, I think my answer is not going to be too helpful. I use ADX as a guide, since I am a discretionary trader. When ADX is going down, I am looking to stay out of consolidation patterns and trading ranges. When ADX is above 20ish or so and rising, I will look for retracement pattern to enter. I do not use ADX by itself, or with any other indicators to produce signals per se.
If you're into development of indicators, I was hoping someone could make something that would indicate the speed at which something is going in one direction, from a fixed reference point. For example, using my swing charts, it would be nice to know the speed at which it is swinging in one direction, starting at the point where the swing pivoted. Any insight?
Here's an example of a swing chart:
ispeculator.com
It would have been neat to measure the speed of the downswings and now the speed of the upswings.
Teresa |
