Is ADX giving false signal? Kindly suggest.

kingsmasher1

kingsmasher1

Well-Known Member
#1
#1


In above 10 mins chart of SBIN 17th April 2017, ADX has shot up, but i fail to see any trend in the circled candlestick area. Where is the trend? What am i missing?

Kindly suggest.:(
 
manojborle

manojborle

Well-Known Member
#5
#5
kingsmasher1 said:
Thanks, so it was around 25, and it is rangebound. That perfectly answers. The shooting up of ADX gave a mental illusion actually.
Click to expand...
Yes, even if ADx is rising that doesnt mean its trending. When ADX starts trading above 25 then he trend starts and DMI gives you the trend direction.
 
V

vsatrader1

Banned
#6
#6
ADX is of not much use in intraday as gap up/down distort its reading in the morning. you can use it only after couple of hours in intra. adx does not show trend or sideways stuff. its shows the strength of the trend.
reading above 25-20 etc are all basic stuff. this is not the way adx to be used.
btw its a super lagging indicator if you go in its calculation which i am highly doubtful anybody care about.

regds,
 
R

rangarajan

Well-Known Member
#7
#7
vsatrader1 said:
ADX is of not much use in intraday as gap up/down distort its reading in the morning. you can use it only after couple of hours in intra. adx does not show trend or sideways stuff. its shows the strength of the trend.
reading above 25-20 etc are all basic stuff. this is not the way adx to be used.
btw its a super lagging indicator if you go in its calculation which i am highly doubtful anybody care about.
,
Click to expand...
i agree with u reg ' its shows the strength of the trend."
Since u say, 20-25 basic stuff, pl discuss how you would prefer to use it for trading ,both Intra & Eod.
I always believe in lateral views provided it is Logical.
If u can post some visual, it could be more helpful.
 
mohan.sic

mohan.sic

Well-Known Member
#8
#8
vsatrader1 said:
ADX is of not much use in intraday as gap up/down distort its reading in the morning. you can use it only after couple of hours in intra. adx does not show trend or sideways stuff. its shows the strength of the trend.
reading above 25-20 etc are all basic stuff. this is not the way adx to be used.
btw its a super lagging indicator if you go in its calculation which i am highly doubtful anybody care about.

regds,
Click to expand...
CAnt disagree with you but I don't understand why did that Adx line moved up when price was sideways...is it because of lagging nature in its calculation part?
 
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