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Directional Movement Indicator


TipTop

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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,, 

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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

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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.

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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.

 

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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.

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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

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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.

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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.

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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.

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