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Robert W Cummings wrote:
>
> 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
Robert,
I agree and think this would be a great help to not only beginners, but
for those of us who "thought we knew".
Thanks,
Randy
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