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Any indicator better than ADX on measuring the Strength?
Posted: Sat May 24, 2014 10:25 pm
Does anyone have any suggestions?
Thanks in advance for any suggestions :>
Posted: Sun May 25, 2014 10:14 am
Posted: Sun May 25, 2014 11:27 am
Thanks for sharing, referring to your given link, Vortex seems only determining the trend direction, but not the trend strength, since there is not much description on determining whether market is trend or range.
Do you have any suggestions?
Thank you very much for any suggestions :>
Posted: Mon May 26, 2014 8:29 pm
A quick click of the "Search" button here on the Roundtable
shows that there is a full and complete trading system based on Vortex, in the Blox Marketplace section of the tradingblox.com Forum. The system's source code was posted in 2010. I've copied an attached image from that 2010 post, showing simulated performance as of 2010. The number of trades is satisfyingly large. If you think that one measure of "robustness" is ((#trades) / (#system_parameters)) then these simulation results may look mighty good to you.
Who knows, this particular way of applying Vortex just possibly might be worth investigating further. N.B. the portfolio is "ksink_156" which is an everything-inclucing-the-kitchen-sink collection of 156 futures markets (!!) on exchanges all around the world. Some of them are highly liquid and others, not so much.
Posted: Tue May 27, 2014 8:26 am
Here's one out of left field . . . . .
If you look in the April 2004 issue of Technical Analysis of stocks & commodities magazine you will find David Sepiashvili's article titled, "Trend-Quality Indicator"
This article describes a method of assessing Trend Strength & Trend Quality
. . . . which seems to be what you want.
"To accomplish this, Sepiashvili uses a summing process to determine the cumulative price change (CPC). The CPC is reset to zero at every trend reversal. Trend reversals are based on the crossing of two moving averages. The CPC is "piecewise" averaged to produce the trend, which in turn is compared to a noise calculation to produce the quality indicator."
Is it any good? does it work? Does it make maney? . . . . I have no idea.
I do know that it's rather obscure indicator (try finding something on google about it) but I cannot vouch for it's efficiency.
I also cannot say if is 'better' than Wilders ADX indicator.
If this kind of thing interest you then spend some time studying it to see what it does & whether or not it might help you.
If you find that this is a 'good' indicator please post your findings to this Forum.
Here is the formula for Tradestation & Metastock users (no bloX unfortunately)
http://www.traders.com/Documentation/FE ... .html#meta
Here is a link from TASC if you want to purchase the article for a few dollars
http://technical.traders.com/archive/di ... PR&yr=2004
Finally, here are a couple of curves taken from the article;