Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: MechanicalMethod who wrote (11108)	1/30/2001 9:10:46 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 12039

I'm not quite sure what you are getting at. For instance first thing I'd lose is If currentBar >=1 and length > 0 then begin. All that line does in Tradestation is ensure that it doesn't try to calculate something impossible like ADX(0). And it also ensures that there are enough bars on the chart (1 more than MaxBarsBack). If MaxBarsBack is being determined automatically, it will look at the formula to determine how many bars are required for the calculation; if set manually by a user, this is a check to ensure the user has set it large enough. and that's followed by If currentBar < length then begin. Quickly looking at the formula in TS, it appears the If clause you refer to simply isolates a section of code that only is executed in the first n bars (n=length-1) and is an attempt to make ADX more responsive in the first few bars. It matters not at all after that, and most people will have many more than 14 or so bars for most time frames and symbols they are working with. I believe all that currentBar business is just clutter that hides the true workings of ADX. What do you think? I don't think so. Sleuth around on the net and you can probably find a complete formula for ADX (or you can build it yourself by breaking down the DMI and ADX functions in TS). Chuck Lebeau's book is useful for how to use it. Its probably more useful to see how others have used an indicator before starting to rework it. ADX isn't perfect, but what is.

To: MechanicalMethod who wrote (11108)	1/31/2001 12:41:59 AM
From: Teresa Lo	Read Replies (2) \| Respond to of 12039

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