ADX and +DI... more?

Discussion in 'Technical Analysis' started by switze22, Jan 20, 2008.

  1. Hey.

    I am new to technical analysis, and I have read that an ADX line above 25 and a +DI over the -DI is an indicator that a positive trend could be forming.

    I have looked into this, and it seems to happen alot of the time.

    Anyway, is there any other indicators that I should throw in with these?
     
  2. Like any indicator, ADX, +DI/-DI, is just a number. You're interpretation of what that number means is subjective. The market doesn't have to react just because your number was reached. Save yourself time and effort and forget trading based on any given indicator alone. Look into a trading system where factors like position sizing, risk/reward, stop losses, etc. are involved with your favorite indicator.

    Trading is probablistic in nature, not deterministic. Therefore, relying on an indicator alone is a losing proposition.