some points i am not sure what you are planning on trading, and what timeframe, but you say you want to stay out of trendless markets (so called trendless) statisitcally speaking (varies with market development, but is generally true ) the stock indexes only "trend" 4-6 days a month this means roughly 3/4 of the time, they are "trendless" (i prefer the term "rotating around value" but i am a big fan of market profile). so called trendless days are EXTREMELY tradeable but if you don't want to trade them, that's your decision however, if you are only trading index futures, or indexes, you are going to be sittin' on yer hands most days, which is kind of silly (imo) imo, what is key, is determining when the market is strongly trending or not. when it is, use setups that suit that stage of market development. when the market is rotating around value, then use appropriate setups ADX is a measure of trend, but it merely tells you what the market HAS done. it's ability to let you know if the market will CONTINUE is another issue entirely. that's why i don't use these sorts of indicators, but i concentrate on price, the tape, internals, key reference areas, etc. it is true that on a strongly trending day, you will have plenty of time to get in on a continuing trend by seeing it in the ADX. the problem is how do *you* determine if the market is strongly trending (ie gonna continue). i know how *i* do it, and it aint ADX
Getting other people's opinions is fun and can be informative. But nothing can replace your own testing of the markets you follow using your own method, which may or may not include your own interpretation of an indicator or other analytical tool.
Whitster I am looking forward to hearing more about it and getting to know your solutions. If you don't mind: I'm mainly interested in intraday trading - indexes - forex etc. Charly
based on the common definition of a "trending" market ... no, it wouldn't read what he wrote and what i wrote. like i said, *i* prefer markets rotating around value vs. "trending" markets. the dow/S&P only "trend" 4-6 days a month, on average. imo, learn to trade various market conditions mean you will find many more profitable trade opp's you will also not try to force square pegs into round holes
Thank you for you insights! Right now I'm deepening into price/volume analysis, supply/demand, wyckoff, chart patterns, seasonal patterns etc. I understand I need to have a good understanding about this before I can go forward in my trading. Many things I read is somewhat controversial for me, that I haven't just knew or thought about before. But I get the feeling that I'm on the right track this time. It all makes sense. I figure if I understand the principles of why the market moves or doesn't then I can take advantage of this fact. Hope you agree?
My point is that I only trade ES and have not been sitting on my hands most days as you suggested in a prior post.