Directional Movement Indicator

[TipTop 1]

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,, 

[TrendFollower 712]

@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. 

 

[TipTop 1]

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

[TrendFollower 712]

@TipTop,

No worries. Thanks. 

[Bopperz 59]

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.

[Caseynotes 2,085]

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.

 

[dmedin 505]

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.

[Caseynotes 2,085]

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.

[dmedin 505]

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.

[Caseynotes 2,085]

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.

[dmedin 505]

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

[Caseynotes 2,085]

6 minutes ago, dmedin said:

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

yeah sure, why not?

[dmedin 505]

Yours is for DJIA.

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

[dmedin 505]

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

[Caseynotes 2,085]

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.

[dmedin 505]

5 minutes ago, Caseynotes said:

the lines were on the chart anyway, irrelevant.

Yes 🌟

[Caseynotes 2,085]

Just now, dmedin said:

Yes 🌟

irrelevant to your nonsense.

[dmedin 505]

3 minutes ago, Caseynotes said:

irrelevant to your nonsense.

How rude!

[dmedin 505]

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?

[Caseynotes 2,085]

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.

[dmedin 505]

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.

[Caseynotes 2,085]

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?

[dmedin 505]

1 hour ago, Caseynotes said:

lol, why all the whining about indicators then?

🤔

[TrendFollower 712]

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.