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"Each indicator that we look at in this study has its weaknesses and the
Average Directional Index is no exception. Charles LeBeau, a long time
trader and writer had this to say in an interview a number of years ago.
"Imagine that we have a nice long base. We jump on board when ADX starts
rising from a low level. We successfully carry this trade all the way up to
a high ADX level, somewhere above 30, and then the market turns down. The
ADX will start to decline showing an absence of trending direction, but the
price does not have an absence of direction, it is moving down!"
He feels, as others, including myself, that will all the smoothing and other
data that is used to determine the plotting of the ADX, that we are actually
looking at 30 days of data vs. the 14 that we use as a default in our
software models."
*********WOULD IT BE SAFE TO SAY THAT IT IS BETTER TO USE A 7-PERIOD "ADX"
ALONG WITH 14-PERIOD "+/- DMI'S" ??????
OR LAG THE "ADX" BACK BY 7 DAYS?????
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