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Developing a system #21 (ADX at 25, 50 & 75)

Strategy by dean Miskovich

Hi, All!
Maybe you have noticed this but I felt I might alert you to a phenomenon I noticed using the ADX indicator.
If you set up an ADX indicator window with the following parameters you will see the event happen:

ADX 14, 9
ADX 7, 4
(ADX 3, 2) optional
Horizontal lines at the 25, 50 and 75 values.

Now here's what I saw.
I noticed that the 25, 50, and 75 points seem to be inflection points, ie points where the market either pauses or turns. in addition, Market trends that strengthen through the 25 value tend to continue strengthening. Duh, right? But, the same trend that strengthens through the 50 mark will generally accelerate in the current direction after pausing at the 50 point.
The same trend, after acceleration through the 75 point, will most likely strongly reverse just above the 75 point.

These events happen very often on the daily and hourly time scales but tend to break down on much shorter time scales.

I am trying to develope a strategy based on this but need more testing to develope more accurate entry points. For now this seems to be a good indicator for determining exit strategies and more profitable exit points.

Hope this helps.

dean Miskovich

Hi dean Miskovich,

thank you for sharing your idea.

These are the key points for ADX, therefore around them we should see some distinctive activity.

I've recently stumbled upon a custom ADX indicator, which provides some additional visual guidance.
Hopefully, it could be of some help to you.

Advanced_ADX.mq4

Best regards,
Edward

ok. i am not using meta trader. so what is 14,9. is that two adx one with 14 and another at 9. What do you mean?

thansk

Unfortunately, I don't know where the second parameters coming from, possibly it is the value for +-DI.
Hopefully we can hear from the author.

Best regards,
Edward

Ottima idea da valutare il livello alto nel time-frame 4h. Noto molti break confermati....complimenti!!!!

read the book ian cobsey /integrated technical analysis (wiley trading advantage); he explaines how to use .I bought my book at Amazone

What's the relationship between the three adx?

ADX 14, what does it means & function of 14 ?
Best rgds,
KH

KH, not sure what you mean.
14 stands for 14-period ADX. When you want to add an indicator, you have to specify what period it'll use. By default it's 14.

Thomas

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