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: Christopher who wrote (10487)	6/3/1999 6:50:00 PM
From: peter n matzke	Respond to of 12039

Christopher, > The only thing I would say is yes you can use Oscillators when ADX is greater then 20 only if you trade in the direction of the main trend. You know that stocks in an uptrend do pull back and an oscillator at that point is good if you want to enter trade. This is the philosophy of Nick Vance and Price. I was just stating Wilder's philosophy since he created ADX. If there weren't different view points, who would we buy from and sell to.<g> I have not read anything from Lebau or Lucas although i have heard their names before. When Wilder created ADX he was looking for a switch to change his system as the market changed to maximize profits, from a trading range bound market to a trending market. So ADX was just a trigger within his system. It really wasn't designed as a stand alone indicator. So the way that Wilder intended ADX to be used was to use Point and Figure, Moving Averages, Gann, and Bar chart price patterns when the ADX was indicating a trend( whether its 15, 20, or 25). And to use RSI, %R, Stochastics and Bar chart price patterns when the ADX was low (less than 25, 20, or 15 based upon user preference). ADX simply switched the indicators which were then used to trigger buy or sell decisions. regards peter