macd and adx .. a deadly combo ...

[masterstroke]

hope now the image is visible. ..

 

[masterstroke]

hope this picture is now visible...

 

[amitrandive]

can some seniors prepare an afl for this which we can backtest.. ??
i again post my rules as below :

1. buy when macd gives bullish signal and adx is above 25 .
2. sell when macd gives negative signal or u get decent 25 points or market is closed.
3. short when macd gives bearish signal and adx is above 25.
4. cover when macd gives bullish signal or u get decent 25 points or market is closed.
hope to hear from seniors soon.

masterstroke

Please post your request for AFL in Happy Singh's thread.
http://www.traderji.com/amibroker/90119-simple-coding-help-no-promise-145.html#post959290

 

[amitsh27]

Works on stocks as well mastermind????

 

[blisscapital]

hope this picture is now visible...

1) Use 'shotty' software to capture image

2) to upload images (use the "link for forums/message boards" after uploading to paste link in forum)
http://www.traderji.com/equities/47979-canteen-741.html#post591768

 

[masterstroke]

yes amitsh27 works well on stocks also but not recommended as not personally tested .. and secondly its again proven that index is always best for trading as its not manipulated...

i am sure some senior will post afl soon .. one more thing to keep in mind is that if macd cross happens and adx is below 25.. wait for adx to come above 25 and then take entry ..

 

[ihatetoregister]

Hi peeps ,

I am new to trading and am doing a considering amount of reading before taking a plunge .

As highlighted in this thread macd + adx is indeed a cool combo . I read that it is very frequently used by FOREX traders . My understanding of the ideas is this :

MACD : it will help you catch the trend . Ex whenever the cross over occurs it means a downtrend or an uptrend . Remember MACD is a lagging indicator ( since it is calculated from past averages . Hence you cannot be sure if the trend is strong or not ) To know if the trend is strong or not you need to use it in combination with ADX .

ADX : it will tell you how strong the trend is . Its values can range from 0 to 100 . Smaller values mean weak trend ie. ADX < 20 . Higher values mean a strong tread .

Now we know why it works

 

[Purushotham]

Hi Vijay,

TP's signature mentions upload link to imgur. However, imgur requires to create an account, login, password etc. So such restriction with tinypic, and one can upload pics without any hassle of having an account. My 2C.

IMO you do not need to create any account using imgur.

 

[Riskyman]

If you use this combo on smaller time frames like 1/3/5/10 mins there are big chances that you will get whipped around badly.

 

[masterstroke]

yes true risky man and thats why i have choosen 15 mins which is fair enough for intraday trades.. as for me intraday trading is trading in only nifty and that too wit 20-25 points gain ... thats it ..