Need an alternative to adx

Hello Seniors,

I have been using adx to avoid entries in range bound markets. But i am missing alot of big moves because of that. So, is there a way to determine the strength of the trend with out using adx??

Thanks in advance… :slight_smile:

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There is no proverbial Holy Grail… If you drop your ADX period, you will get a signal earlier however you will also get into more whipsaws (false moves) which can be frustrating… Other trend indicators like moving average crossovers, MACD etc also work sometimes and fail sometimes… In the end the two issues that you have to considers are (1) Your trading timeframe and (2) Backtesting various ADX values with your chosen timeframe to see which have given best results in the past (while doing this you should not over optimize and should also test the selected parameter with out of sample data)… Also as a trend follower if a stock goes from 100 to 200 i.e 100 points in a year, you can realistically only catch 30 - 60 of those 100 points… No system will help you capture the entire 100 points…

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try Aroon Oscillator, but I am sure this will also give u delayed entries(i.e. after a big move) because all indicators are lagging. however, you can check if it suits ur need and decide for urself whether to use it or not… best wishes :slight_smile:

Similar to ADX, Aroon indicator signals the start of a new trend at a very early stage. The trend may be a uptrend or downtrend. The methodology for the calculation of Aroon Indicator makes it unique and innovative. While most of the indicators are based on Price or volume, Aroon is based on Time. Aroon Indicator is calculated based on the number of periods passed since X days high or low. Aroon Up indicator measures the number of periods from X days high in percentage terms, while Aroon Low indicator measures the number of periods from X days low. It is a very popular indicator among technical analysts and used in conjunction of other indicators to successful identify trends.

Read more below:

Thanks fr th reply… :slight_smile:
im testing the system taking diffrent periods of adx and results are quite decent with now… thanks again…

Thanks… :slight_smile:
I ll go through it…