This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
For Free - No Credit Card Required
The Best trading rules for the ADX technical indicator
Like the MACD, Relative Strength Index (RSI) and Stochastic, the ADX, Average Directional Movement, is a very popular trading indicator used by stock, FOREX and commodity traders in technical analysis. The ADX is considered to be the best technical indicator by many traders and investors.
It is a momentum indicator, such as the stochastic, that allow traders to determine whether the market is trending or not and to what extent. An ADX value that is lower than 20, indicates that the trend is weak, while a value above 40, signals a strong trend.
The Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) are two other indicators often used with the ADX. They determine the force of the up and down moves.
The +DI is also referred to as PDI and its QuantShare formula is: Plus_Di(period)
The -DI is also referred to as MDI and its QuantShare formula is: Minus_Di(period)
The ADX is sometimes called Directional Movement Indicator or Wilder's Averaged Directional Index after its creator J. Welles Wilder.
This object contains a list of 13 trading rules that show different ways to trade the ADX. All the rules can be optimized; the list already contains some optimizable variables. It generates more than 70 rules after analysis.
It contains:
- Crossover rules, such as buy when the +DI is higher than -DI and +DI one bar ago is lower or equal to -DI one bar ago.
- Turning point rules
- Rules that can be used in a trend following system
- Rules with a moving average...
For example, there are rules to buy, sell, short or cover based on the trend, on the crossover of two ADX moving averages or on the period of time the ADX stays below a certain threshold.
In several formulas, you can replace the ADX by the ADXR, Directional Movement Rating, and see if this produce better results for you.
You have to log in to bookmark this object What is this?
>>>> More trading objects? click here to search for trading sytems, downloaders, screens, custom drawing tools, indicators... by country, market or style.
