Ranking of indicators

Can somebody rank indicators from the most important to the least important, when I want to find the best up- or down-trending stocks?


Lojze

 

the absolute most important indicator, IMO is my stop loss....That tells me exactly what i need to do..and it never fails...unlike most indicators and setups...

 

To find Up & down trending stocks :

ADX & +DMI , -DMI
ADX measures the strength of a trend and directional movement the direction * = up, - = down.

ADX > 35 and - DMI > + DMI = strong downtrend
ADX >35 and +DMI > - DMI strong uptrend

see also
http://www.equis.com/free/taaz/index.html

and

http://stockcharts.com/education/What/IndicatorAnalysis/indic_ADX.html

 

What is this indicator IMO?

 

How good are ADX and DMI for daytrading compared to scalping?
In principle there shouldn't be much difference, but anyway.


Lojze

 

IMO...in my opinion

 

I also think adx is a good trend indicator. I don't think it really
matters what time frame you use.

I use 100 tick charts and look for an adx above 30 to
identify a trend.

Here's a chart from 07-05-02...the dotted white line is 30.

 

I use RSI (Relative Strength index) quite often:

RSI value above 70 usually shows that the security is overbought and the price is likely to fall down.
RSI value below 30 usually shows that the security is oversold and a reverse trend may be expected.

http://www.quotelinks.com/technical/rsi.html

TradingBoy

 

In my experience, all oscillators work much better on the daily charts than they do on intraday charts. They need a larger sample of data to give good signals. They are useless when using bars smaller than 5 minutes, in my experience anyway.

 

What has daytrading & scalping to do with searching for stocks stocks in up or down trends ? ( initial question - see above )

ADX and DMI simply determines whether a stock is in a trend, how strong this trend is and what direction it has - given on the pre-set length of periods.

However, as with many indicators, it's lagging, so I see not much use for it in fast daytrading, let alone scalping.

Some people may consider to trade the crossovers of +DI and -DI - on a longerterm chart, say 5 minutes but, if you're in the market for an 1/8 or a 1/4 , I'd say watch the tape , T&S, the orderbook ( Nasdaq L2 ) and that's about it.

see also chart below