General Trading Chat

ADX and + DI /-DI system is a standard indicator in Amibroker.

It is a good system and trades only in strong trends and remains out in sideways markets.... It has following disadvantages :

1) Signals come late so we will have to fergo the initial portion and last portion of a trend.

2) Signals sometime come when the trend is about to end.

So if we are the types who want to catch each turn of the market, then this may not be a good system for us.

Smart_trade
That's right, but may be it can be used as a complementary indicator, esp in swing trades.

One rule that I have learned to follow is "Don't trade against the ADX". A painful lesson, but a sure shot.
 

Similar threads