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Registered User
Joined: 3/15/2006
Posts: 27
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hi al i am wondering what the best setting for ADX short term trader?
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Unggaro, for short term swing trading I like to use thes setting for ADX and DI+ DI-, 7,3
In the following chart you will see the point of interest or trend change in the green circles. Remember that the Raw ADX line when showing a positive slope can initiate long or short positions. But the DI+ crossing up throgh the DI- is for long only.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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My memory could be wrong on this but I believe
the famous trader Linda Raschke uses a 14 period
ADX on all time frames all markets. (14,14)
She also uses a 20 bar exp. mav and a 3-10 oscillator.
(the difference between a 3 period simple mav
and a 10 period simple mav) on all time frames
all markets.
A platinum user recommends 13,8 with a 3 period mav
applied.
------------------------------------------------------------------------
The basic point is its not the settings that are magic. Its
learning how the indicators respond to your trading style.
When you look at something over and over again. You
get good at reading the tea leaves.
Thanks
diceman
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Registered User
Joined: 3/15/2006
Posts: 27
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thx all, should i use moving average combine to adx and +di and - di line??
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Diceman is correct, you have to find the settings that work for you. We are just giving our outlook on the indicator. I am sharing with you the settings that I use to short term trade. I do not use a moving average for this particular indicator.
Experiment with different settings on older charts and see what the outcome was. Do not look to copy what others do. Better to take what others say with a grain of salt and do your own research. We gave you a place to start.
Good luck to you.
Apsll.
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Registered User
Joined: 3/15/2006
Posts: 27
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thank you aprsl
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Registered User
Joined: 12/7/2004
Posts: 393
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For whatever it's worth, I also use 13/8.
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Registered User
Joined: 12/31/2005
Posts: 266
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tell us how this works out in a 3-4 min trade.
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Registered User
Joined: 12/7/2004
Posts: 393
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I almost never trade in a 3-4 min time frame.
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Registered User
Joined: 12/31/2005
Posts: 266
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unggaro does.
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Registered User
Joined: 10/26/2005
Posts: 238
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Search for day trading video’s on u tube and watch these guys trade you will see on trades that short there is no time for indicators they all lag too much. The only one IMO that is of any use is a moving average, say catch a bounce off the 20 MA with a rising 50 MA. Good luck, AB
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Allenbary is correct. All indicators lag price action accept one, and that is volume. When I am day trading (not my prefered trading style) then I use price and volume only by tape reading, and decision points, like support/reistance, moving averages as Allenbary has suggested supply/demand, trendlines.
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Registered User
Joined: 12/31/2005
Posts: 266
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not sure i'd even bother with volume either.
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Registered User
Joined: 10/7/2004
Posts: 2,126
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LOL, so many choices, and so many way to read them. No wonder many go deranged.
Look ADX - whatever your choice is there is only one thing the matters for that indicator - if it reads over 30 within its own time frame - then you have a strong trend - that is all it indicates.
For day trading is worthless in my opinion.
You want to spot a strong trend the learn how to read level II or above. Forget about volume bars on the chart they are worthless for day trading - look at level II as well as TOS. Those will show you first hand.
Moving averages can be helpful in daytrading, but in a 3 or 4 minute frame a 20MA / 50MA are also worthless. You need to be closer to the price action.
Keep things simple and learn one or 2 indicators at the most - tha is all you need. The more you complicate things the more doubts you will have when it comes to make a decision.
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