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: JPR who wrote (7694)	1/10/1998 8:56:00 AM
From: Loren	Read Replies (1) \| Respond to of 12039

Paul - Thanks for bringing ADX up. This indicator has made a difference to my trading in the last 3-4 months, especially in this market. Some indicators, including oscillators, can go positive not because the stock is starting to move up, but merely because the stock has stopped a drastic move down. You buy in, and go sideways for a while, tieing up your money, and then finally either go up or down. Bad move... rate of return is the name of the game! ADX, which is part of the DMI/ADX set of indicators, shows you the strength of the trend. If it's 25 and rising, it's a good trend, if dropping, the trend is breaking down (the stock is becoming trendless). You can use it with DMI, or with other indicators. Adding it to my system rules boosted my rate of return by keeping me out of marginal trades. Caveat - I use it with weekly data... I've really never tested it with daily data, so I don't know its effectiveness in shorter-term trading. It's the only indicator of its type I've ever seen. Anyone know of another that measures strength of trend? Loren