The Use of ADX | Forex Factory

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The Use of ADX

  • #1
  • First Post: May 31, 2009 5:48pm May 31, 2009 5:48pm
I am making a post for the very first time. The reason is because I didnt want to come and make any how post simply because other people are posting threads. The reason I am making this post is to help other traders as well as to improve myself. If people respond to this message, I will go ahead to uncover the secrets of trading using adx
  • #2
  • May 31, 2009 5:55pm May 31, 2009 5:55pm
Nice thing! Let's give some good info to traders, it can help many people
  • #3
  • Jun 1, 2009 2:35pm Jun 1, 2009 2:35pm
Hi Victusa,

It would be great to hear your expert take on the proper use of ADX. It's an excellent indicator but largely underused and misunderstood based on discussions I have seen from Dr. Charles Schaap. I look forward to learning and participating in this thread.

fxpilot
  • #4
  • Jun 3, 2009 2:42pm Jun 3, 2009 2:42pm
Sorry my people for the break in communication. I was away on outside assignment as soon as I initiated the thread. If people are still following please let me get some reply so that I can continue
  • #5
  • Jun 3, 2009 3:23pm Jun 3, 2009 3:23pm
were listening!
  • #6
  • Jun 3, 2009 5:25pm Jun 3, 2009 5:25pm
we are waiting ADX is nice indicator i dont use it but i like to know how other trader use it
  • #7
  • Jun 3, 2009 6:09pm Jun 3, 2009 6:09pm
Quoting fxpilot
Hi Victusa,

It would be great to hear your expert take on the proper use of ADX. It's an excellent indicator but largely underused and misunderstood based on discussions I have seen from Dr. Charles Schaap. I look forward to learning and participating in this thread.

fxpilot
Did you purchase his book by any chance? If so was it worth it? Because it's pretty expensive for a trading book.
  • #8
  • Jun 3, 2009 7:59pm Jun 3, 2009 7:59pm
Quoting victusa
I am making a post for the very first time. The reason is because I didnt want to come and make any how post simply because other people are posting threads. The reason I am making this post is to help other traders as well as to improve myself. If people respond to this message, I will go ahead to uncover the secrets of trading using adx
I am also interested in the proper use of the ADX.
  • #9
  • Jun 4, 2009 3:26am Jun 4, 2009 3:26am
The Average Directional Movent otherwise known as ADX is a very powerful trading tool. With it alone and may be joined with other indicators if you wish, you will be successful in fx trading. I use it as my main indicator
The AdX is a trend system. The beauty of the adx is that it shows you when to buy, sell, when the trend is strong and when the trend is weak
The Adx line itself is the trend indicator and once the adx line is above 25, it means that there is a trend. When the adx is 40 and above it means that the trend is very strong and when the adx line is below 25 it means that the trend is weak.
  • #10
  • Jun 4, 2009 3:35am Jun 4, 2009 3:35am
There are two very important components of adx viz +DI and -DI
These components are the buy or sell signals
When the +DI crosses -DI, it is a buy trade. Watch your adx line to see the strenght of the trend by reading the position of it.
On the same hand if -DI is above +DI, it is a sell trade. Instead of looking at the adx all the time, I attach the adx crosses indicator with the 14 period default. Please use it as it works very well in all TFs and preferably 1H.
As soon as the +DI and -DI crosses each to signal buy or sell, an arrow will appear. Arrow up is buy while arrow down is sell.
Attached File(s)
File Type: ex4 ADXcrosses.ex4   3 KB | 1,890 downloads
  • #11
  • Jun 4, 2009 3:39am Jun 4, 2009 3:39am
I want readers reaction and let us see if a good programmer can prepare an ea on the adx crosses. The ea should be such that it will have no stop loss or take profi. Since the crosses does not repaint, I want a programmer to volunteer and make an ea so that arrow up executes a buy trade and will be closed by a counter arrow down and will at the same time execute a sell trade. I believe that if we get some one that can do this, it will be very awsome in this era of ea's
  • #12
  • Jun 4, 2009 3:54am Jun 4, 2009 3:54am
Quoting victusa
There are two very important components of adx viz +DI and -DI
These components are the buy or sell signals
When the +DI crosses -DI, it is a buy trade. Watch your adx line to see the strenght of the trend by reading the position of it.
On the same hand if -DI is above +DI, it is a sell trade. Instead of looking at the adx all the time, I attach the adx crosses indicator with the 14 period default. Please use it as it works very well in all TFs and preferably 1H.
As soon as the +DI and -DI crosses each to signal buy or sell, an arrow will appear....
Hi Victusa
Very raw in this enviroment but learning .
You mentioned watching the adx lines but on the indicator I only see the arrows, which by the way is much easier than watching lines.
Sorry if this sounds like a dumb question but it is the small things that tickles me

Many pips for all

John from Durban
  • #13
  • Jun 4, 2009 4:21am Jun 4, 2009 4:21am
Quoting ferndog
Did you purchase his book by any chance? If so was it worth it? Because it's pretty expensive for a trading book.

Hi ferndog,

I purchased the book and it did an excellent job of explaining the proper use of ADX that I have not seen anywhere online. It's expensive, but in my opinion - good value for money.

fxpilot
  • #14
  • Jun 4, 2009 9:08am Jun 4, 2009 9:08am
thanks fxpilot. i use adx also but never heard of this guy before. i might check out that book. if it can show me some different ways of using adx that i don't know now that would be great.
  • #15
  • Jun 7, 2009 10:17am Jun 7, 2009 10:17am
Quoting victusa
There are two very important components of adx viz +DI and -DI
These components are the buy or sell signals
When the +DI crosses -DI, it is a buy trade. Watch your adx line to see the strenght of the trend by reading the position of it.
On the same hand if -DI is above +DI, it is a sell trade. Instead of looking at the adx all the time, I attach the adx crosses indicator with the 14 period default. Please use it as it works very well in all TFs and preferably 1H.
As soon as the +DI and -DI crosses each to signal buy or sell, an arrow will appear....
Hi body.
I hope , in e-mail You asking about something like that.
You can be confuse I think with just one parameter setting apply - it about price with which You apply indi to chart : 0-Close , 1-Open , 2-High , 3 - Low , 4 - Median , 5 - Typical , 6 - Weighted
Good luck
Peter
Attached File(s)
File Type: mq4 ADX_EA.mq4   10 KB | 1,391 downloads
  • #16
  • Jun 8, 2009 5:15am Jun 8, 2009 5:15am
victusa
Have you disappeared ?

No answer to question asked a while ago

Many pips to all

John from Durban
  • #17
  • Jun 8, 2009 7:08am Jun 8, 2009 7:08am
Quoting pitpiter
Hi body.
I hope , in e-mail You asking about something like that.
You can be confuse I think with just one parameter setting apply - it about price with which You apply indi to chart : 0-Close , 1-Open , 2-High , 3 - Low , 4 - Median , 5 - Typical , 6 - Weighted
Good luck
Peter
Hi Peter
I am still confused where do you apply indication to, on the EA or where because on the EA there is no price indication

Thanks

John from Durban
  • #18
  • Jun 9, 2009 5:03am Jun 9, 2009 5:03am
Quoting jmcl
Hi Peter
I am still confused where do you apply indication to, on the EA or where because on the EA there is no price indication

Thanks

John from Durban
Look on pics , I hope it help
Good luck
Peter
Attached Images
  • #19
  • Jun 9, 2009 5:05am Jun 9, 2009 5:05am
Please my guy forgive me. I have been off and on cos of my job.
All the same you can always insert adx in your chart. Just go to insetmenu, indicators, trend and put the average directional movement. thanks
  • #20
  • Jun 9, 2009 7:24am Jun 9, 2009 7:24am
Peter,
Thank you for your assistance I am already testing the stuff
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