THANKS an interesting article. I have copied the meat of the article below. Creating a Usable Strategy Although the ADX appears to work well on its own, market volatility can cause second-guessing and false signals. However, when combined with chart types that more easily highlight trends, it becomes a lot easier to identify profitable opportunities. Using a combined analysis is as simple as determining whether the chart pattern's sentiment is the same as the indicator's sentiment. Therefore, if you are using Heikin-Ashi and ADX, simply check to see what the trend direction is on the chart and then take a look at the trend strength shown on the ADX. If both are telling you that there is a strong trend, then it may be a good idea to enter. Here's an example: Figure 6 Here we can see the trends are smoothed out by the use of averaging techniques (like Heikin-Ashi) and are being confirmed through the use of indicators (like ADX). This gives us a clear and reliable picture of the current market situation, without any unnecessary clutter (market noise). Conclusion As you can see, chart analysis is much easier when using noise-removal techniques. They can help you avoid costly false signals and other mistakes, while allowing you to quickly and accurately locate and capitalize on trends. by Justin Kuepper
i have the most 100% accurate indicator in the world. i will tell you what it is and publicly disclose it here for all to use. it's the majority opinion of members of elite trader. take a poll do the opposite. m
Brownie, All teenagers and on up know that the minority is always correct in trading. Give us a break and try to BO of your teen age mentality. Make a liast of well known ET'ers who have expressed specific limitation and explain the step by step procedure they need to follow to get past their particular traumas. Pick a few of the ET'ers who have blown out and gone to work for other people. Get a focus, Brownie.
============== Hum; Yes, excellant points on moving averages[50 dma,200 period..... .................................................] RSI,MACD, long story short=NO thanks. Why; moving averages have been/are battle tested for years/ decades. They underline & overline price, volume. I dont use them in a mechanical way.