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adx indicator


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adx indicator

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  #1 (permalink)
dallas, tx/ usa
 
 
Posts: 8 since Jul 2016
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hi everyone,
i'm try to develop new trade setups and have recently been using the adx to try and trend trade breakouts or retracements. hasn't been working out so wanted to get anyone's opinions on how they use it? thanks

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  #3 (permalink)
Boise, Idaho/USA
 
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ADX has been around a long time, you may want to do some searching and read the older threads.

I really like Fat Tails anaDirectional Movement because he includes a signal line and his usual great choice of averages. Unfortunately my time frames are a little tight to carefully read and consider so I have gone over to one the Wizard put together. ADX4VictorK. I overlay the ADXR as a signal line. If you are testing a system the background color changes as the indicator moves around may seem silly. When you have to make a decision fast or end up as a flattened squirrel it becomes a much bigger deal. Especially given how fast the futures market can move.

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  #4 (permalink)
mankato, minnesota/usa
 
 
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If you are looking for trending stocks, filter your list with the ADX. Use ADX>30

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  #5 (permalink)
Buenos Aires Argentina
 
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A few questions for food for thought:

1. What do you believe the ADX is calculating? (More of a pop quiz question here)

2. Why the ADX?

3. Are you trying to use the ADX as a proxy for a mathmatical representation or the exact output that ADX is giving you? If as a proxy, why the ADX over other proxies?

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  #6 (permalink)
Australia
 
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Trailer Guy View Post
ADX has been around a long time, you may want to do some searching and read the older threads.

I really like Fat Tails anaDirectional Movement because he includes a signal line and his usual great choice of averages. Unfortunately my time frames are a little tight to carefully read and consider so I have gone over to one the Wizard put together. ADX4VictorK. I overlay the ADXR as a signal line. If you are testing a system the background color changes as the indicator moves around may seem silly. When you have to make a decision fast or end up as a flattened squirrel it becomes a much bigger deal. Especially given how fast the futures market can move.

Thanks for the above but can not find ADX4VictorK. Any clue where to find it?

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  #7 (permalink)
Boise, Idaho/USA
 
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Don Laing View Post
Thanks for the above but can not find ADX4VictorK. Any clue where to find it?

Try search for attachments ADX4VictorK by Tasker uploaded Feb 2014.
I also have ColorInputSeriesforSlopeChanges

So I have set ADX as transparent then use the colorinputseries to do the ADX line, that gives me a choice of 3 colors for up flat and down. Or you can just use the color dots, but they don't tell you about slope. The color background change works for me because I don't have to read it. By the way the difference between this and a more refined ADX from FatTails wasn't very much on my intraday charts and since I use it as a filter the back ground color change was much more valuable than a small increase in accuracy. Horses for courses.

Anyway here it is on a 2000 tick ES chart. I use Mountain standard time so just add two hours and it will make sense.[IMG][/IMG]

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  #8 (permalink)
Australia
 
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Great Love the chart

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  #9 (permalink)
Boise, Idaho/USA
 
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MacroNinja View Post
A few questions for food for thought:

1. What do you believe the ADX is calculating? (More of a pop quiz question here)

2. Why the ADX?

3. Are you trying to use the ADX as a proxy for a mathmatical representation or the exact output that ADX is giving you? If as a proxy, why the ADX over other proxies?

There are a lot of indicators out there for trend strength. ADX is an old one and it has a lot of bad information about it's use that has been repeated in entry after entry on the internet. So if you follow the written advice it will generally not be effective. That is why I like it, old, readily available and not used by that many people. All that being said it is only a part of a system, not a stand alone.

In combination with the DI +- lines it provides a lot of information in a single box. I have tried replacing it with other combinations of indicators, but it seems they take more screen real estate. For me it provides a decent filter. The biggest thread I have run into using ADX as a filter is the Perry's Method thread.

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  #10 (permalink)
Boise, Idaho/USA
 
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Talk is cheep, here is an example of how the ADX and DI+ and - can be used as a filter to keep a simple moving average system from bankrupting you. Again this is mountain standard time. See how the ADX woke up and announced a trend after the EIA inventory report came out keeping the system out of a bunch of whipsaws earlier in the day. Sorry about the size of the chart but the point isn't the chart, the point is to see how the filter works.

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  #11 (permalink)
San Francisco, CA
 
 
Posts: 8 since Dec 2016
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I have had past success using ADX to identify non-trending markets (ADX < 20). In non-trending markets, market neutral strategies, such as selling straddles and selling iron condors, generally perform well. But I have had mixed results when using ADX to identify breakouts / trending markets. (ADX > 20).

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  #12 (permalink)
Fletcher NC
 
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put the adx on 1 min chart add 20 day ema ...when you get larger range bars blowing through the ems and the adx is 30 or more trade the pull back to the ema.. that is the only system i have seen that works

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  #13 (permalink)
Toronto, Canada
 
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Trailer Guy View Post
Try search for attachments ADX4VictorK by Tasker uploaded Feb 2014.
I also have ColorInputSeriesforSlopeChanges

So I have set ADX as transparent then use the colorinputseries to do the ADX line, that gives me a choice of 3 colors for up flat and down. Or you can just use the color dots, but they don't tell you about slope. The color background change works for me because I don't have to read it. By the way the difference between this and a more refined ADX from FatTails wasn't very much on my intraday charts and since I use it as a filter the back ground color change was much more valuable than a small increase in accuracy. Horses for courses.

Anyway here it is on a 2000 tick ES chart. I use Mountain standard time so just add two hours and it will make sense.[IMG][/IMG]

I could not find the attachments as well. Maybe I need to be an Elite member?

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