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Registered User
Joined: 12/30/2004
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Is this an Advance/Decline indicator? Please help. JoeP
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Registered User
Joined: 12/26/2004
Posts: 4
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QUOTE (jpatrell) Is this an Advance/Decline indicator? Please help. JoeP
The ADX (Average Directional Index) oscillator fluctuates between 0 and 100. Readings above 60 are relatively rare. Readings below 20 indicate a weak trend, while readings above 40 indicate a strong trend. The indicator does not determine the trend as bullish or bearish. It instead assesses the strength of the current trend. I.E. Readings above 40 can indicate a strong upward or downward trend.
You can also use it to identify potential changes in a chart from trending to non-trending. Many use the ADX crossing from below 20 to above 20 as a sign that the trading range is ending and new trend is developing.
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Registered User
Joined: 12/11/2004
Posts: 3
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There are several places to learn about ADX.
1. Alexander Elders book “Trading for a Living,” is a good source.
2. “New Concepts In Technical Trading Systems”, written in 1978 by Wilder.
One usually uses ADX in conjunction with +DI and –DI, ADX (Average Directional Index). Developed by Wilder, ADX is derived from these two other indicators.
See Tradeon.com for the programming details for TC2000.
http://www.tradeon.com/tradeon/tc2000/misc.html
(edited by Moderator)
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