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Omega List members,
There are many knowledgeable people on this list. I for one would like to
suggest something I know would help me immeasurably to take advantage of
the vast knowledge thats available to all of us on here. Turn this
information into a personal education for me and other members with less
experience in TA. Indicators for discussion going all the way from A to Z.
I know for me I just don't realize the intended purpose of some of these
indicators and some I THINK I do. So if the list thinks this would be
something you could benefit from being discussed join in.
I'll start with one that has always mystified me but seems to be used a lot
by many.
Is this indicator seems to be designed for breakout systems or money
management exits. Anybody using this a different way or what ever?
ADX
Omega's definition:
The ADX function attempts to measure the trending quality of the market,
isolating those periods where the market is not trending.
One of the problems with trend-following systems is that you must endure
the agony of a choppy market while you are waiting for a trend. If the ADX
can truly tell us when the market is trending, we should be able to
eliminate trades during this choppy period by filtering our trades with the
ADX. The ADX tells you whether the market is moving directionally or not.
It does not pick direction, rather it simply indicates whether or not, and
by how much the market is trending.
The greater the ADX value, the more a market is trending.
Robert
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