Jump to content
  • 0

Directional Movement Indicator

Question

Hi All, i'm a big fan of this function and probably like a lot of us, use this to measure volatility.  I have been applying this once in on a chart in a particular market, but just wondered if this could be applied  to whole markets before entering individual charts i.e.  for instance, across the full range of commodities on offer, perhaps as a column stating the ADX in ascending order?   This would certainly speed up my research for identifying potential trades to follow.  Look forward to any replies  so I can hopefully implement . Kind Regards,, 

  • Like 1

Share this post


Link to post

23 answers to this question

Recommended Posts

  • 0

@TipTop,

I am too.

Trading in the right direction is crucial to my trading strategy based on trend following principles. 

You make an interesting point. I must admit I at the moment apply it to those assets I am monitoring the price action on. Some of them I will be trading and others waiting for certain signals/indicators to hit my criteria. I am not sure how you would be able to apply it to whole markets before entering the charts but I can see why you are asking the question. 

I too would be interested if this is possible but I don't think it is, certainly not on IG's UK Spread Betting platform. 

 

  • Like 1

Share this post


Link to post
  • 0
1 hour ago, TrendFollower said:

@TipTop,

I am too.

Trading in the right direction is crucial to my trading strategy based on trend following principles. 

You make an interesting point. I must admit I at the moment apply it to those assets I am monitoring the price action on. Some of them I will be trading and others waiting for certain signals/indicators to hit my criteria. I am not sure how you would be able to apply it to whole markets before entering the charts but I can see why you are asking the question. 

I too would be interested if this is possible but I don't think it is, certainly not on IG's UK Spread Betting platform. 

 

 

1 hour ago, TrendFollower said:

@TipTop,

I am too.

Trading in the right direction is crucial to my trading strategy based on trend following principles. 

You make an interesting point. I must admit I at the moment apply it to those assets I am monitoring the price action on. Some of them I will be trading and others waiting for certain signals/indicators to hit my criteria. I am not sure how you would be able to apply it to whole markets before entering the charts but I can see why you are asking the question. 

I too would be interested if this is possible but I don't think it is, certainly not on IG's UK Spread Betting platform. 

 

Thanks for the feedback, best regards

Share this post


Link to post
  • 0

I do like ADX, its quite easy to see visually what the current trend is.

However, ive had trouble when backtesting due to the number of combinations I can think of! DI+>20, DI+>DI-, ADX>20 and DI+>20 etc.

Got a bit messy.

  • Like 1

Share this post


Link to post
  • 0
9 minutes ago, Bopperz said:

I do like ADX, its quite easy to see visually what the current trend is.

However, ive had trouble when backtesting due to the number of combinations I can think of! DI+>20, DI+>DI-, ADX>20 and DI+>20 etc.

Got a bit messy.

The > 20 really applies to the average line (A, usually black) to indicate market trending (>20) or not trending (<20) and acts as a filter so you are looking to go long when D+ is above D-  and A is above 20.

 

Share this post


Link to post
  • 0
8 minutes ago, Caseynotes said:

The > 20 really applies to the average line (A, usually black) to indicate market trending (>20) or not trending (<20) and acts as a filter so you are looking to go long when D+ is above D-  and A is above 20.

 

But it whipsaws about so much (like many of these types of oscillator thingies) that you really have to rely on price (patterns, S/R etc) and this indicator ends up just being another distraction that people pay too much attention to.

Share this post


Link to post
  • 0
11 minutes ago, dmedin said:

But it whipsaws about so much (like many of these types of oscillator thingies) that you really have to rely on price (patterns, S/R etc) and this indicator ends up just being another distraction that people pay too much attention to.

yeah but there is a need to filter out noise and a tool to keep you out of sideways choppy markets so whatever works for the individual really.

image.png.738d942d3627091f579740c5f53a4b52.png

  • Thought provoking 1

Share this post


Link to post
  • 0

Can't argue with whatever works for the individual but for me personally, I don't see the 'added value'.  In Murphy's book he suggests PSAR with ADX and using the ADX as a filter (if PSAR says buy and DMI green above red then buy else don't), but this must only be of interest for people programming algorithms.

Share this post


Link to post
  • 0
6 minutes ago, dmedin said:

Can't argue with whatever works for the individual but for me personally, I don't see the 'added value'.  In Murphy's book he suggests PSAR with ADX and using the ADX as a filter (if PSAR says buy and DMI green above red then buy else don't), but this must only be of interest for people programming algorithms.

the problem is that D+ and D- are doing the same job as PSAR, they are both trigger indicators neither is a filter, they are both either on up or on down.

The A line is separate and is saying when to stay out no matter what D+ and D- is doing.

  • Like 1

Share this post


Link to post
  • 0

So is ADX telling you not to trade this just because it hasn't risen up above 25 yet?

1401636510_FTSE100_20200225_15_57.thumb.png.ef6fa305048f194d427e12bde1d041a2.png

Share this post


Link to post
  • 0
6 minutes ago, dmedin said:

So is ADX telling you not to trade this just because it hasn't risen up above 25 yet?

1401636510_FTSE100_20200225_15_57.thumb.png.ef6fa305048f194d427e12bde1d041a2.png

yeah sure, why not?

image.thumb.png.aa6de5bd15f986b6ae5e123ba25aef37.png

Share this post


Link to post
  • 0

Yours is for DJIA.

What use are all those extra lines, do you really need them to see there's a good short opportunity? 🧐

Share this post


Link to post
  • 0

Here's a good one that tells you when not to try and short EURO 😮

EUR_USD_20200225_16_13.thumb.png.71922af527eab2c187e560d77d1f1bb2.png

Share this post


Link to post
  • 0
3 minutes ago, dmedin said:

Yours is for DJIA.

yeah, context.

3 minutes ago, dmedin said:

What use are all those extra lines, do you really need them to see there's a good short opportunity? 🧐

the lines were on the chart anyway, irrelevant.

Share this post


Link to post
  • 0
5 minutes ago, Caseynotes said:

the lines were on the chart anyway, irrelevant.

Yes 🌟

Share this post


Link to post
  • 0
3 minutes ago, Caseynotes said:

irrelevant to your nonsense.

How rude!

Share this post


Link to post
  • 0
15 minutes ago, Caseynotes said:

the lines were on the chart anyway, irrelevant.

Back to my point, what's it giving me that the MAs and RSI aren't?

Share this post


Link to post
  • 0
4 minutes ago, dmedin said:

How rude!

they are all different tools, different tools for different jobs, there is no one 'does it all' holy grail indicator, I got the impression MAs and RSI weren't doing it for you.

Share this post


Link to post
  • 0
Just now, Caseynotes said:

 I got the impression MAs and RSI weren't doing it for you.

No, it's my inability to control my impulses, organize my thoughts and other personal faults that hold me back.

Share this post


Link to post
  • 0
14 hours ago, dmedin said:

No, it's my inability to control my impulses, organize my thoughts and other personal faults that hold me back.

lol, why all the whining about indicators then?

Share this post


Link to post
  • 0
1 hour ago, Caseynotes said:

lol, why all the whining about indicators then?

🤔

Share this post


Link to post
  • 0

I like the 'Directional Movement' indicator. It is useful when looking at the direction the price is moving in and the strength in which it is moving in. 

For me trading in the direction of the trend can reduce risk and increase the 'odds and probabilities' of a successful and profitable trade. Of course there are no guarantees but it is all about increasing your chances in a trade. 

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Member Statistics

    • Total Topics
      9,037
    • Total Posts
      49,195
    • Total Members
      62,502
    Newest Member
    budikosu
    Joined 05/04/20 01:39
  • Posts

    • I cannot see that the global economy will have a fast recovery. I can only see a depression looming unless a vaccine is quickly developed. This is the first time in a long time that the US has been directly affected by a major negative event (9/11 was localised). With the US slowing down, there is no other economy that will be able to create the demand required to get us a fast recovery. China's domestic demand is not large enough and Chinese personal debt was going through the roof even before the virus pandemic. How will the world and the global economy be once this pandemic subsides? I think a very changed society and traditional retail will be one the worst sufferers. Also with all this money printing, is there a risk of hyperinflation in the long term? Well, gonna buy a couple of KGs of gold just as insurance and not for investment per se. Also think property prices will come under the cosh so sitting on cash will enable you to buy distressed properties as getting loans will be hard for many. I am reevaluating my log term investment strategy to take into account the changing environment.
    • Yes...lots of people reacting in strange ways right now......Keep smiling.... How long will it all last? I know it sounds boring....but forget the noise (harder said then done) and watch the charts...the trend is your only friend.... That said....down for april.....sell in may and come back in june!! Dan         
    • I have same question. I work in Dubai and have hold account with IG. If I plan to move to India, how can I deposit and withdraw money.
×
×