The ADX indy uses only the EMA to calculate it's value. We all know that MA's lag, how bad is an ADX lag? I looked all over the place but couldn't find anything. Any sort of help would be greatly appreciated!!
Thank you in advance and green pips to those who are live!
Best,
Shem
When trading: "Empty your mind, be formless. Shapeless, like water."
You use short period for DMI+/-, then, ADX will fast.
DMI+ and DMI- cross over is a lag signal, but, a good signal of momentum/sentiment shift.
ADX is produced by ma, so, always lagged. But, ADX is used as trend strength indicator. so, lag is not big issue.
ADX is not good signal for a trend beginning.
ADX is a good signal for a trend end. It is a leading signal. No lag at all.
You use short period for DMI+/-, then, ADX will fast. DMI+ and DMI- cross over is a lag signal, but, a good signal of momentum/sentiment shift. ADX is produced by ma, so, always lagged. But, ADX is used as trend strength indicator. so, lag is not big issue. ADX is not good signal for a trend beginning. ADX is a good signal for a trend end. It is a leading signal. No lag at all. All depend on how you use ADX.
Ignored
Thank you very much kind sir!!
I'm putting together a simple strat where I overlap three ADX's combined with a second indy. I'd like to attempt to pick up a long term, mid term and short term trend entry level but what you say makes a lot of sense. Maybe I should use the triple ADX more as an exit signal...
Anyway, thank you very much for your valuable input!
When trading: "Empty your mind, be formless. Shapeless, like water."
