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Gold/Mining/Energy : CDN. MOMO PUPPIES -- Ignore unavailable to you. Want to Upgrade?

To: trade15 who wrote (3386)	7/15/1999 7:07:00 PM
From: keith massey	Read Replies (1) \| Respond to of 36688

Curious to know what period length you use for the ADX indicator On the 5 minute chart I either use a 14,14 or 21,21 ADX (note: 14,14 would be a 14 period D+/- with a 14 period smoothing period for the ADX calculation) On the day chart I also use a 14,14 ADX. The basics: If ADX is above 25-30 and trending up than a trend is in place and don't use your oscillators (RSI, Stoch) unless you are using them to buy on dips. If the stock has been basing for a while and starts to turn up the ADX might be below 25-30 even know there is a trend in place. This is where a lot of people screw up with their indicators. Look at the period before the ADX to determine what the appropriate value should be to determine the trend. If ADX gets above 50-60 be prepared for a pullback since the stock is likely overbought. If the trend appears up but the ADX has been dropping for a while it means the trend has weakened and you should be prepared for a correction. That is the basics in a nut shell. There are a lot more complicated use of ADX with the D+/- lines but the above work well. If you want some good information on the subject get Wilder's 1978 book. Best Regards KEITH