Good (Sunday) morning everyone!!!
Well I've FINALLY completed my ADX/ADXR work sheet (it ONLY took about TWO HOURS this morning which is FINE on a Sunday morning BUT it's a whole different story at 01h00)!!!
In addition to completing the work sheet I also spent some time analysing the charts and the Wilder indicators and I've arrived at some new conclusions.
First: at some point I indicated that using the LRC's to determine the prevailing trend and only taking trades in that direction was 'the way to go'. I've changed my mind about this. The LRC's are MUCH too slow to react or indicate a change in the direction of the trend. By the time they've indicated a change in direction you've already missed some MONSTER trades. This is particularly true of the SIS. I still believe that using the LRC's in conjunction with the RTS to indicate where to place your orders is 'on the money' but they are useless when it comes to indicating which trades you should be taking.
Second: I've added Bill Williams' Awesome Oscillator and Acceleration Deceleration Oscillator to the charts.
NOW: DON'T REMIND ME THAT I SAID I'D NEVER HAVE ANTHING ELSE OTHER THAN 'WILDER' ON MY CHARTS!!! I KNOW I SAID THAT!!! But let's not forget that Bill Williams is also one of the 'old timers' in this business and developed the 'Profitunity Trading System' or 'Chaos Theory' which I also know to be a good trading system from having used it before. The only reason I STOPPED using his 'stuff' was because at one stage I requested some input from him and his 'cronies' and they pretty much just 'fobbed me off' which left a very bad 'taste in my mouth'. However: this of course does not change the fact that he ALSO INDEED 'knows what he's talking about' so if using his 'stuff' is going to add some extra 'insurance' to the trades then it may be time for me to put my personal feelings aside I think)!!!
Now for those of you who are not familiar with Bill Williams' 'stuff' then here are two links that will explain the Awesome Oscillator (or 'AO' as it's commonly known) and the Accelerator Decelerator Oscillator (or 'AC' as it's commonly known):
Chaos Theory: Awesome Oscillator (AO)
Chaos Theory: Acceleration / Deceleration Oscillator (AC)
If you're interested the entire 'Profitunity Trading System' is OUTLINED on this thread:
Table of content
(I know that he is aware that the system is OUTLINED at Alpari so I'm just assuming that it's in the public domain).
Take a look at it i.e. it's not a bad system at all.
HOWEVER: my intention is NOT to detract from the sheer genius of 'the old man' so please don't ask me anything about Bill Williams' trading system(s) (well at least not on THIS thread). What I'm seeing is that the AO and PARTICULARLY the AC react VERY MUCH quicker to a change in trend direction than EVEN the +DI and -DI lines of the ADX. So I'm suggesting here that you would only take long trades or short trades based on what either (or both) the AO and / or the AC are indicating. The reason that it's important to determine the general direction of price PARTICULARLY with the RTS is because the very LAST thing you need nor want is to go short as per the RTS and the instrument or pair breaks out and starts trending long against you (which to be honest is pretty much the reason that I'm sitting on some 'less that stellar' positions at the moment). Take a look and let me know what you think. I'm NOT saying to base trades on the AO and / or the AC but I AM saying to 'note' them for added 'insurance'. Yes: they (like anything else) CAN be wrong (my AUD/NZD position is 'living proof' of this fact) BUT let me say that they're more 'right' than 'wrong'. I'm also not advocating that you use the AO and / or the AC to STAY in positions either I'm advocating that they JUST be used for 'insurance' upon placing an order and / or opening a position.
That said: let's ALL have a better trading week than last week!!!