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Corey
Rainbow is much the same. All these multiple MA indicators show you
"even stacking" (trend is strong) and "inflections" (trend is changing).
I find ADX, +DI, -DI setup is very slow. In particular once it gets going
it takes an awful lot of choppiness to convince it that there really isn't a
trend there after all. Depends what you are looking for. If I'm in a position
I take more notice of ADX, if I'm looking for an entry I take more notice of
AMA. Wilder has quite a few rules regarding ADX that don't seem to work for
me. Maybe someone who knows more about ADX would like to tell us more.
Jeff
> Jeff,
> I entered and ran your Long Term and Short Term moving averages and
> thought they were interesting. Have you or do you use any of the rainbow
> plots as found at
> http://www.equis.com/customer/support/formulas/cf00068.html ? Kaufman's AMA
> works very well at filtering out noise and showing the underlying trend.
> Something else I sometimes use is a least squares linear regression of the
> prices to show the trend and then the slope of the line created by linear
> regression to show the rate that prices are changing, although this leads to
> more lag than I like. Price ROC works much better for me.
> How about some of Wilders indicators such as ADX, +DI and -DI? Since
> +DI is just a mirror of -DI, it is more helpful to plot a difference of
> them. Aroon and Vidya are often useful in my screening.
>
> -Corey
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