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thank you again for your response.
I have been basically looking at the ADX/DMI combo in order to get rid of some of the whipsaws that happen when trading with the PSAR / MACD.
I will defenitly look into the others you have mentioned in your reply.
About the time frame I intend to trade we are on the same page it seems. Long swing/position trading is what I am interested in mostly.
What about the TTM_Squeeze? Do you see any advantages on using it as a filter to avoid ranging/whipsawing periods?
yes, I am a photographer. Mostly travel and street photography. It is very relaxing indeed to just go out and look at the world from that perspective after days of looking at charts. These two activities seem to complement each other somehow. I know a lot of traders that love photography as well. interesting...
Can you help answer these questions from other members on NexusFi?
then really learn how to use my "trigger Chart"...that is really the only one needed for a swing trade... from a few weeks to a few months
no... I don't find any advantage to Keltner's Channels... if you use Bollies (and your should really learn them and the associated indicator BBwidth) this is all you need.
I don't use ThinkOrSwim ... I don't use any platform at all really... I have my charts that available through several free charting areas and I use a discount broker for my trades. I took a look at their Learning center and I definitely do not agree with how they use Bollinger bands or BBwidth.
I am in this forum because I really like talking about indicators and how I use them.
I think I have directed you to the spot in my Canadian journal where I discuss the construction of my "trigger chart" and how it is constructed...Keltner's channels would just clutter the chart for no advantage to me.
Others may find them useful but I don't... I can find most everything they do using other methods.
To plot this indicator on the Thinkorswim platform just use the DMI indicator study and in the property box change the DI+ and DI- to draw as Histogram instead of a line and to plot the 20 line just go into edit source and insert this code plot Line20 = 20; Now you'll have the powershift indicator like Hubert Senters shows.
Thanks LukhyG for the "heads up" on Hubert Senters' PowerShift indicator. I put together the TOS thinkscript below for any/all whom might be interested...
Very useful, thanks. It is basically a DMI/ADX using histograms.
However, if we are to wait for the ADX to be above 20 in order to enter a trade, a lot of big moves are lost. If the DMI crossover occurs but the ADX is still under 20 that doesnt always mean that there is no trend. The ADX lags after the crossover.
There must be a better way to confirm the trade so that it is not caught too late.
thank you. I am starting to see things a bit clearer now with BB and BBwidth.
Thank you very much for your vote for my instruction
As far as ADX goes I will reiterate my thought on ADX when I said
Quoting
In truth I don't put a lot of faith in the ADX value itself... it is the DI+/- values that are important to me. Specifically the values where the look back is 30 days... not 8 days or 14 days
I do use the DMI (also known as DI) a lot....they are very reliable and most informative.
But ADX which is a strength of trend but not the direction of a price... Also it also lags the action by quite a bit in digging deeper into its calculation I see the reason.
This chart comes from Stockcharts.com showing the calculation of DI(14) and ADX(14)
It takes 14 days of data to calculate the first DI+/-....it takes 14 more days to calculate the first ADX(14).
No wonder there is a lag between the ADX and DMI... the DI+/-(14) values are not related to the ADX at all since that ADX is a simple average of the previous DX values calculated from from previous DI+/- values.
It is no wonder that I did not find the ADX useful...
In an intra-day chart where you are focused on what is happening RFN (right now) you are basing your conclusions on pretty heavily smoothed data.
Thank you very much for your vote for my instruction
As far as ADX goes I will reiterate my thought on ADX when I said
I do use the DMI (also known as DI) a lot....they are very reliable and most informative.
But ADX which is a strength of trend but not the direction of a price... Also it also lags the action by quite a bit in digging deeper into its calculation I see the reason.
This chart comes from Stockcharts.com showing the calculation of DI(14) and ADX(14)
It takes 14 days of data to calculate the first DI+/-....it takes 14 more days to calculate the first ADX(14).
No wonder there is a lag between the ADX and DMI... the DI+/-(14) values are not related to the ADX at all since that ADX is a simple average of the previous DX values calculated from from previous DI+/- values.
It is no wonder that I did not find the ADX useful...
In an intra-day chart where you are focused on what is happening RFN (right now) you are basing your conclusions on pretty heavily smoothed data.
thank you.
I see now why ADX lags and how its true importance is to point out trend strength but taking this in consideration...
I was wondering if there is a way we can detect ADX slope angle? in degrees I don’t think is possible but how about in percentage from the previous bar?
I would love to be able to scan for ADX value AND angle of slope. I have played around with the scans but there is nothing like it.
Say for example a SCAN that would give me all stocks with ADX of 20 and sloping up by 25%
this is a really good idea. have you seen aliens extraterrestrial visual systems thread at ff? he shows an awesome use of adx on MTF. i'd love to simplify adx by using the angles like you suggest on mtfs. ultimately i'd love to make it into a currency meter. coders should be all over this idea. imo, adx is one of if not the most reliable indicator there is. the reason it is not more popular is that it is very hard to read. i have trouble reading it. i hope someone who can code weighs in here.
hi, no, I havent seen the thread.
Can you please, send me the link?
I couldnt find it using the search.
I am a graphic designer by trade and I do see some advantages as to have more elaborate design clues for indicators that can actually pinpoint setups better and earlier.