ADX no good?

[bedsit]

Hello,
As a trader beginner I’m trying to find good indicators. I understand MACD, Stochastic, RSI etc.
About ADX heard so many times that it is excellent for finding out if the instrument is trending or not.
From what I see, when ADX is above 30 its too late because it is relevant to only few candlesticks and already going down below 30. Is there a trick to see when it starts rising or falling as a signal that instrument is trending?
This is one I don’t get and it seems to me useless - it’s easier to see if instrument is trending by only looking for higher highs, higher lows etc
I would appreciate if there is someone out there to shed some light on how to use ADX and its alleged usefulness?:?::?:

 

[Shikamaroo]

When it is rising to above 30 a strong trend is in place. you enter on a pullback or breakout and when the trend continues go along for the ride. you dont actually try to trade the first wave since you dont have a strong confirmed trend. if you want to know if it trending before it is trending the answer is simple. it is not trending yet get a time machine, it is the best indicator you could ever get with it you'll never be wrong lol. short of that figure out what gives you a good chance of being profitable and do that. indicators are not magic!

google the adx and read some free articles and come back and tell us how u think u suppose to use it if you're wrong someone would help you i'm sure but dis aint school so do your own darn homework

 

[TAct]

google the adx and read some free articles and come back and tell us how u think u suppose to use it if you're wrong someone would help you i'm sure but dis aint school so do your own darn homework

Easy does it Shikamaroo. Remember when

 

[bedsit]

Thanx Shikamaroo
I'll try google as it seems this is not the place to learn about it - so much for for the forex discussion on this site - slight impression if people on this forum know about some things they like to keep it for themself and let beginers suffer losses through their ignorance.

 

[virtuos0]

Thanx Shikamaroo
I'll try google as it seems this is not the place to learn about it - so much for for the forex discussion on this site - slight impression if people on this forum know about some things they like to keep it for themself and let beginers suffer losses through their ignorance.

You said it yourself, the best way to find a trend is to look for when price is going upwards or downwards steadily without getting too wiggly. I judge my trends based on wigglyness, I've never heard of ADX and I have no idea what it is.

 

[Shikamaroo]

i wouldn't go quite so far as to say ppl keep it to themselves, however the same questions are asked over and over by every new person to the site. i in fact asked my own foolish questions a while ago and i still got a few in me :cheesy:.

Ppl here like to suggest what they know and whatever strategy they trade so from the lack of responses to your question i am guessing few ppl here use the ADX.

I would feel bad to tell you how i trade since i am only using my new approach to trading about 3 weeks and am very much a newbie. I passed through the ADX some time in April

basically what i told you is correct about the ADX. the problem is that it lags the market even if you use it with PSAR and the RSI (the way wells wilder intended use), the move may be done before the signal is fired off however strategies abound that are profitable using it (not that i could get them to work). No matter what anyone tells you bedsit your journey will take you to many things that wont work for you but eventually you will find the one thing that does. once you have eliminated everything that doesn't work the only thing that remains is what does work.

 

[Shikamaroo]

oh yeah, that one thing, it is called discipline

 

[Shikamaroo]

check this out. it was recommended to me by a legendary member here in the GBP/USD analysis thread over in the strategies and systems section.

http://www.hardrightedge.com/wizard/tl2.htm

http://www.trade2win.com/boards/forex-strategies-systems/60972-gbp-usd-analysis-59.html

 

[bedsit]

Thanx S,
I checked the links. I guess like anything else need patience, study etc. Discipline is important one (still lacking on that one as I realised after few painful trades)

 

[Black Swan]

Thanx S,
I checked the links. I guess like anything else need patience, study etc. Discipline is important one (still lacking on that one as I realised after few painful trades)

I had a strange epiphany a couple of years back, my charts took ages to load the reams of stuff I had on them at the time; rsi, cci, macd, candles, 5 MAs, momentum, adx...I played around with the awesome, the gator...even bought into the gator lips, jaw and teeth..(quite good that one, but let's not digress ) Anyhow this day the chart only loaded one MA before all the other indicators, nothing else just one red line and iirc it was the 8 day ema on a one hour chart. It locked in that mode for approx. a minute or two, we met and then just sat there looking at each other. The smooth oscillation showed near enough where the price had been over the past few days....follow price, there's nothing else. Over days, weeks, months, years it doesn't fail...

 

[tomorton]

You said it yourself, the best way to find a trend is to look for when price is going upwards or downwards steadily without getting too wiggly. I judge my trends based on wigglyness, I've never heard of ADX and I have no idea what it is.

Wigglyness. That's a good name for it.
I use what I call Trend Strength Indicator to arithmetically rank trends. Display price as weekly HLC bars, with 50EMA (daily). Then add the number of weekly, H, L or C that occur above the 50EMA. The higher the number the stronger the uptrend (the less 'wiggly' the price). For example, a 33 week chart has potentially 99 weekly H, L or C below the 50EMA: Standard Chartered's chart currently shows 7 H, L or C beow the 50EMA, that gives it a TSI of about 93% over the period. Price has risen about 91% in these 33 weeks. On the other hand, although Renishaw has risen more than that (about 122%), its TSI (33wk) is only 76%, suggesting a significantly less reliable uptrend.

There's no significance in the 33wk period, it just makes calculating rough %ages easier.

 

[zigglewigler]

Thanx Shikamaroo
I'll try google as it seems this is not the place to learn about it - so much for for the forex discussion on this site - slight impression if people on this forum know about some things they like to keep it for themself and let beginers suffer losses through their ignorance.

The best lesson.

Did you touch the hot pan a second time after failing to listen to mummy the first time?

Try applying ADX on Renko charts for overview, takes the fizz out, use small time frame or tick candles for entries.