Good (Wednesday) morning all,
Hey Randon:
I'm with you this week!!! Not a lot of movement at all by the looks of things!!!
sirkeen:
I've sort of 'played around' this morning with ADX and ADXR i.e. I've tried shortening the period and lengthening the period but I'm not seeing where EITHER is beneficial to us. AGAIN: using AUD/NZD as a 'primo' example go and shorten the period to 7 and then lengthen it to say 28 and look at the ADX and ADXR values AS THEY RELATE to what's happening on the chart. Shortening the period to 7 does indeed 'get' both ADX AND ADXR below 20 - 25 more often when the pair is trading in a range BUT (and this is an IMPORTANT 'BUT') both values fluctuate FAR too much i.e. they easily jump to above 25 EVEN ALTHOUGH the pair is STILL trading in a range (and now that I think about it this WAS the reason that I 'switched' back to the default of 14). In other words (from what I can see): shortening the period makes them too sensitive to price changes and short rallies up or down when the pair is STILL REALLY trading in a range. Using a higher value i.e. 28 for example: by the time ADX and / or ADXR are indicating that the pair is trading in a range and you should be using the RTS or TBPS the pair has started trending already!!! Take another look and see if you agree me with or not.
kaalilaatikko:
Hello and thanks of the post and insight.
My money is on ONLY ADX (unless I'm going to factor in the CSI for choosing trades which unfortuanately is a REAL pain to set up for forex pairs because most of the time we're working with fractions of USD or whatever your base currency is).
Actually: WHILE I was typing the above I had another thought!!! Could it be possible that he is saying something along THESE lines:
If you're going to factor in the CSI to your trading THEN trade ONLY the instruments or pairs that have a HIGH CSI rating (which of course incorporates ADXR) BUT choose the trading system to be used based on ADX??? OR: if you're NOT going to use the CSI then again trade ONLY the instruments or pairs that have a HIGH ADXR rating BUT choose the trading systems to be used based on the ADX??? There is a very subtle difference here. In other words: let's say you were drawing up a spreadsheet like mine i.e. my Daily ADX ADXR Work Sheet. So NOW: you find the TOP 9 or 10 or 11 or 12 (as much as you mm rules will allow) CSI OR ADXR RATED INSTRUMENTS OR PAIRS AND THEN choose the trading system to be used ON THOSE TOP CSI OR ADXR RATED INSTRUMENTS OR PAIRS based on the value of ADX??? Could THIS be the 'ADX/ADXR magic bullet'??? Let me know what you all think. For some or the other reason this DOES make sense (well to me anyway)!!! In other words (and quite rightly so): CSI and / or ADXR will determine which are the TOP RATED INSTRUMENTS OR PAIRS to be trading and ADX will determine which system to be using!!!
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