I don't consider values of 15 or 90 because, as said, they are at such a limit that doesn't make any sense to investigate on that. Small values are, I might tell you, below 40/45.
The indicator for my trading systems: which values to take into account?īig values of ADX are all those exceeding, I might say, 65, whereas 80 or 90 are very seldom seen on any chart, so with about 65, you are already in a situation of strong acceleration.
I'm not going in-depth into the formula, the equation because it doesn't make sense here and on most of the charting software you find the ADX as is so you have just to input the number of bars on which it is calculated, but just be aware that it tells you, more or less, how accelerated the market is in that very moment. One of the indicators that I love most, it is a big word, that I prefer, let's say, is the ADX.ĪDX is an indicator that moves between 0 and 100 even if 0 and 100 are both crazy levels, and it measures somehow, let's say, the acceleration of the price move. So I don't use indicators to build my setup but if I use them, I use them as a filter to another kind of entry or activity. Thinking a bit better about this I also realize that yes, sometimes I use indicators, but I don't use indicators in the way people think.
The indicator for my trading systems: what it is, how to use it and why I don't mean they don't work at all, but for sure there are better ways to build trading systems.Īll the students of the Trading Systems Supremacy program know the way I build trading systems, know that I use chart patterns as filters and I use analysis with these patterns to understand what a market normally does, based on that I develop further to get the end result. My answer normally is that I don't use indicators for my trading systems and this answer is astonishing for most of the guys out there who are asking me the question because the common thinking about the trading systems is that a trading system is a proper mix of indicators put together to realize the automation which is far from the truth. We have already discussed this but I just want to go more in-depth in this matter. This question is often asked to me and it comes together with: "What indicators do you use?".