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How to read ADX correctly for CHOP


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How to read ADX correctly for CHOP

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  #1 (permalink)
Rechovot
 
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Normally people us the ADX for trading and put a Threshold number of 20 or 25, so that if you are BELOW this number you do not take the trade.

The correct way to use the ADX indicator is NOT to trend trade when the ADX is BELOW BOTH the +DI and the -DI lines. See attached chart. This has nothing to do with a Threshlod number of 20 or 25 or 15. It is solely based on the +DI and -DI lines.

I would like someone to add the attached NT indicator DM, the possibility of putting a little box up on the chart when the ADX is BELOW BOTH the -DI and +DI. The box should be coloured RED with "NO TRADE" and GREEN with "TRADE".

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Name:	ADX - Chop.png
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  #3 (permalink)
Springfield, MO
 
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perryg:

I have downloaded the .cs file and compiled. No box is showing? Is that a seperate indicator?

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  #4 (permalink)
Rechovot
 
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There is no box. I would like someone to program the box in this indicator, and put in in the panel of the indicator or on the chart.

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  #5 (permalink)
Springfield, MO
 
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Duh! My Fault!

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  #6 (permalink)
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Here ya go Perry.

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  #7 (permalink)
Rechovot
 
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Hello eDanny,

Thanks for your hard work. I have tested it as it seems to work just fine. Its just what the doctor ordered.

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  #8 (permalink)
Springfield, MO
 
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The following original code is complements of eDanny - Great Work!

I can't leave well enough alone - hugh fault of mine. No, I have no idea what I am doing, just trying some very simple logic after looking at the original code.

Could someone tell me if the following code change is correct (see code below)? I am attempting to write "Chop" when the ADX is below both DI+&- or if the ADX is above both the DI+&- to write End Trend (yes, I understand that this should be used for a heads-up, not always literal). Finally, if neither of those conditions are true, then write "Trade".

if(Value[0] < DiPlus[0] && Value[0] < DiMinus[0])
DrawTextFixed(
"ADX", "CHOP!", TextPosition.TopLeft, Color.White, new Font("Ariel",12), Color.Black, Color.Red, 15);
else
DrawTextFixed("ADX", "Trade!", TextPosition.TopLeft, Color.White, new Font("Ariel",12), Color.Black, Color.Green, 15);

if(Value[0] > DiPlus[0] && Value[0] > DiMinus[0])
DrawTextFixed(
"ADX", "End Trend!", TextPosition.TopLeft, Color.White, new Font("Ariel",12), Color.Black, Color.Yellow, 15);

else
DrawTextFixed("ADX", "Trade!", TextPosition.TopLeft, Color.White, new Font("Ariel",12), Color.Black, Color.Green, 15);

Forgive me if this is the wrong place to post this!

Again, great work eDanny and perryg

Thanks!

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  #9 (permalink)
Rechovot
 
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YOu have the right idea. I tried myself to do this exact thing that you are trying. i.e. to add to the indicator the "possible End of Trend, or Topping" as per my explanations. I wrote the same code but it did not work for me. We again need the help of a professional coder.

Good thinking !!

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  #10 (permalink)
Rechovot
 
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Affliction,

Here is the corrected version which will show also "End Trend". I just could not let it go once I saw your post.

One warning, the "End Trend", is a WARNING of a possible TURN in the Trend. Watch the ADX line TURN DOWN. This is the final warning when this happens.

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  #11 (permalink)
Frankfurt
 
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hi perry,
just to understand :
you have modified dannys code now ?
or added something ?
or what ?
will it overwrite dannys first version ?

basicaly its easier for all to follow the action if you use diff. named versions wich do not overwrtite the older ones when adding new functions + trying out new variations - as long as the development runs. do it with "save as ...." before adding stuff to the original code.
iE DMplusV1 ... V2 ....

BTW - interesting topic here !

max-td
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  #12 (permalink)
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Max,

I have modified and added code. As I am not a programmer myself, but can read and change code sometimes.
I will in future do as you say. The original change that I requested, was done by Danny, but here I changed font size, colours, and position to what I want. After that I sent out to all (perrys trading platform) that version. I have now added more code to enhance the "END of TRADE" situation as this is how I would like to see the final version

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  #13 (permalink)
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Perry,

Thanks for your important input regarding ADX and DMs.

If the DMPlus code in this thread is the same as in the other "platform" thread, to avoid confusion, only one thread should be used as the location for the file.

The other thread could show the link and post # for the code location. Thanks for your help.

Also noticed font name "Ariel" in the code. I believe the correct spelling (at least in my system) is "Arial" - although after testing it doesn't seem to matter...

kz

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  #14 (permalink)
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Kz,

Thanks for the remark. The main dissucssion of the use of ADX/DM is on the "Perrys Trading Platform" thread. There the updated indicators will be. This thread was a request for some help regarding the coding, but the continued discussion with examples are on the other thread.

Thanks for catching the spelling of the "Arial" font, as I did not like the way the letters came out on the chart, but did not know why. This is the exact reason. Thanks .

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What DMplus setting do you use? I use 4 range in general and on default there are no trades many days. I Appreciate the good work on this. Trying to find a good chop filter that can bring me up to 80%. Thanks!

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Southsea View Post
What DMplus setting do you use? I use 4 range in general and on default there are no trades many days. I Appreciate the good work on this. Trying to find a good chop filter that can bring me up to 80%. Thanks!

SouthSea,

I have used up until now a value of 5, but have been testing a value of 3 which seems to be even better. The crossover of the DI plus and DI minus together with the price action seems to be even better with a 3.

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Does anyone know how to call this from a Strategy as an extra qualifier?

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  #18 (permalink)
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Rohok View Post
Does anyone know how to call this from a Strategy as an extra qualifier?

Rohok,

Did you make any progress with use of the indicator in a strategy? If you have, can you please post a sample (without revealing the whole strategy of course)?

Thanks,
Jon

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perryg View Post
SouthSea,

I have used up until now a value of 5, but have been testing a value of 3 which seems to be even better. The crossover of the DI plus and DI minus together with the price action seems to be even better with a 3.

Hi Perry

Are you still using a value of 3 or are you back at 5?

Thanks
Greg

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  #20 (permalink)
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grego View Post
Hi Perry

Are you still using a value of 3 or are you back at 5?

Thanks
Greg

I am using a value of 2

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  #21 (permalink)
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perryg View Post
I am using a value of 2

Perry,

Sorry for the confusion, but are you using a setting of 5 (Perry Platform) on a 4 range or are you using the new setting of 2 as stated in this thread for the "Perry Platform"? Clarification would be most appreciated.

Thanks!

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Affliction View Post
Perry,

Sorry for the confusion, but are you using a setting of 5 (Perry Platform) on a 4 range or are you using the new setting of 2 as stated in this thread for the "Perry Platform"? Clarification would be most appreciated.

Thanks!

Greg,

I apologise for the mishap, I thought you were refering to the FORCEINDEX. Here I am testing a 2 which is gving good results. For the ADX, the 5 is the setting for the Perry platform.

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perryg View Post
Greg,

I apologise for the mishap, I thought you were refering to the FORCEINDEX. Here I am testing a 2 which is gving good results. For the ADX, the 5 is the setting for the Perry platform.

Many of us look forward to your findings. I for one look forward to the application on the Perry Platform, if that is your intention. Let us know if we can help and the results.

Thanks again!

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