Hi Kalyan,
Thanks a ton.
I will tweak the ADX with period that you have mentioned and will let you know my findings on it. Also can you please elaborate on Force Index. My TA s/w has this indicator and I would like to know whether this helps in determining whether the market is trending or trading, so that according we can implement trend following system or oscillator based system.
Thanks once again ...
Regards,
a$h.investor
Thanks a ton.
I will tweak the ADX with period that you have mentioned and will let you know my findings on it. Also can you please elaborate on Force Index. My TA s/w has this indicator and I would like to know whether this helps in determining whether the market is trending or trading, so that according we can implement trend following system or oscillator based system.
Thanks once again ...
Regards,
a$h.investor
Yes it's too damn lagging.
A better way to use it would be to use a pair - one for the short term & another one for the longer term, like say a 10d & a 30d ADX. So if the short term ADX is below 30 while the longer term is above it (with off course +DI above -DI), what we get is a short term pullback in a longer term uptrend that is still intact and may actually be a buying opportunity. Another way would be to have one on the weekly & another one on the daily and enter on pullbacks on the daily while the weekly trend is still intact.
Alexander Elder has also devised an interesting indicator called the FORCE INDEX. This one factors in both price & vol movements & can be pretty useful particularly for short term trading; but many TA s/w's do not have this indicator.
Regards,
Kalyan.
A better way to use it would be to use a pair - one for the short term & another one for the longer term, like say a 10d & a 30d ADX. So if the short term ADX is below 30 while the longer term is above it (with off course +DI above -DI), what we get is a short term pullback in a longer term uptrend that is still intact and may actually be a buying opportunity. Another way would be to have one on the weekly & another one on the daily and enter on pullbacks on the daily while the weekly trend is still intact.
Alexander Elder has also devised an interesting indicator called the FORCE INDEX. This one factors in both price & vol movements & can be pretty useful particularly for short term trading; but many TA s/w's do not have this indicator.
Regards,
Kalyan.