Re: [amibroker] ADX'ers - Riddle me this

[NW Trader]

Hi Gerald,   Sorry for the very late reply -- it has been a very busy week, again, and I don't often get a chance to catch up intra week.   For ADX studies, of course one starts with J. Wells Wilder's seminal work New Concepts in Technical Trading Systems (1978). [Don't be put off by the date, Wilder also developed and published RSI, PSAR, CCI, and other basic tools in this book.]  Other books touch on use of ADX (Cooper and other traders, myself included include it as a basic method) however I'm aware of very few books are devoted to it's use exclusively.  One recent publication, which is sitting on my desk only partially read so I can't give a full review yet, is ADXcellence by Charles B. Schaap -- available from Trader's Press and Shraap's own website (  http://www.traderspress.org/detail.asp?product_id=3900  http://www.traderdoc.com/default.asp and also soon from http://stockcharts.stores.yahoo.net/adbydrchsc.html ).    ADX is particularly helpful to identify trends, however a variety of systems have been developed involving pull backs on strong trends, momentum changes of trend, +DI and -DI crossovers, MACDs of DI, etc.  I'd be interested in learning a bit more of your momentum indicator that was in your attached chart -- is it a standard construction?  I see you are using the "standard" 14 period for ADX, what period are you using for the Momentum indicator and do you mind sharing how it's constructed?  If you're interested, I'll dig around and find some of the things I've written over the years with ADX -- as I recall, a MACD was one of the more interesting as was a ROC variant.    Peace and Justice   ---   Patrick         ----- Original Message ----- From: Gerard Carey To: AB Yahoo group Sent: Thursday, June 01, 2006 6:15 PM Subject: [amibroker] ADX’ers – Riddle me this Hi all I noticed recently that often +DI & -DI both DECREASE on the day a possible entry is signalled, by price action or another indicator. (See the attachment) This is not always the case as shown here but it appears to be much more than just a coincidence. Anyone have any insights? It does happen on other occaisions – Could this perhaps be used as an indication of trend strength, usable when holding a position? I am aware that one of the ADX nuances is to look for an entry when the ADX is above both the +DI and –DI. Regds Gerard  --   Gerard Carey   gerardncarey at fastmail dot fm -- http://www.fastmail.fm - Does exactly what it says on the tin Please note that this group is for discussion between users only. To get support from AmiBroker please send an e-mail directly to SUPPORT {at} amibroker.com For other support material please check also: http://www.amibroker.com/support.html SPONSORED LINKS Investment management software Real estate investment software Investment property software Software support Real estate investment analysis software Investment software YAHOO! GROUPS LINKS  Visit your group "amibroker" on the web.    To unsubscribe from this group, send an email to:  [EMAIL PROTECTED]    Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.