ADX/DMI combined with MACD

[tenny45]

Thanks for the info. What numbers do use use on the fast MACD? What settings on the Slow?

 

[bluetipex]

Thanks for the info. What numbers do use use on the fast MACD? What settings on the Slow?

The MACD expert from the web uses 6,19,9 for entries (fast) and 19,39,9 for exits (slow). However, I don't use these.

I like fib numbers, so I like 5,13,8 for my (potential) entries and the standard 12,26,9 for exits.

 

[rito]

Anybody has idea on the book called ADXcellence by Dr. Schaap?.. Heard that its the best book written on ADX ever.

 

[yiehom]

I have. A must.

Anybody has idea on the book called ADXcellence by Dr. Schaap?.. Heard that its the best book written on ADX ever.

 

[vinod.nhce]

I have been using DMI crossover with MACD as confirmation (and the ADX line to check the trend is true) and have had some good success and some terrible failures too.

Has anyone else utilised this system and if so what success have they had.

My experiences have been doing intraday trading on FTSE100 stocks using CFD, I select my stocks using a beta of greater than 1 to ensure there is some volatility.

Cheers
Dico

- yes you can use this system to good profiting but use when both converege to give buy or sell signal at same time it would have 95% accuracy, note: consider buy / sell only when both give sell/buy at same time

 

[grayghost]

- yes you can use this system to good profiting but use when both converege to give buy or sell signal at same time it would have 95% accuracy, note: consider buy / sell only when both give sell/buy at same time

You may get better results if you add Bollinger Bands (20,2) and require that the middle band (SMA 20) turn in direction of trade; this militates against premature entries.

For additional assurance, add Ichimoku (7,22,44), kumo (the cloud) only, and require that trade occur on correct side of correct-color kumo (bullish kumo for bullish trade) or at least within it. This assures that longer-term S/R is favorable.

Further, you may get better results by replacing the rather blunt ADX/DMI 14 with ADX_WildersDMI_v1m (1,13,8,8,1,0); search the forums for this MT4 version. Add levels at 15 and 25 to help see the action.

A DMI pivot should accompany the price pivot. In a trending situation ADX should be above 25 prior to the pullback, assuring sufficient trend, and DMI should make a new high, this assuring sufficient momentum. In a breakout, a new high is not required, but a good consolidation, with ADX in a prolonged low and both DMIs below it at some point, should precede the breakout, assuring a sufficient base.

If you want, to save space, you can use OsMA (12,26,9) in place of MACD, and put it in the same window as ADX/DMI. Color it silver so it won't overpower the window.

To go a step further, do all this after price has trended in the large (use ZigZag (12,5,3) and draw peak-to-peak trendlines to see clearly) and then bounced off the opposite Bollinger Band. This assures compliance with the big picture.

To finish, put whipped cream and a cherry on top.

Bob Stimson

 

[grayghost]

You may get better results if you add Bollinger Bands (20,2) and require that the middle band (SMA 20) turn in direction of trade; this militates against premature entries. ...

For additional assurance, add Ichimoku (7,22,44), kumo (the cloud) only, and Bob Stimson

In the above setup, the OsMA crossing is really superfluous and can safely be ignored. The trigger is usually the turn of MA 20 or the DMI new high. The main use of OsMA is to get hidden and regular divergences, in addition to any that might be offered by DMI, to give greater confidence in entries and exits respectively. Other exit clues are measured A-B-C moves and the opposite Bollie curling back toward the other. If you feel you don't need the somewhat treacherous OsMA divergences, you can dispense with OsMA. I use this system to trade currency pairs on the one-minute time frame. MACD itself is too slow. Use only major pairs, because you need a small spread. A good way is to find trades on MT4 and trade them on Oanda's fxTrade platform set for one-click trading.

Eat the cherry first.

 

[rathcoole_exile]

DAYTRADING THE DOW & DAX

I have tended to use the Parabolic SAR as the 1st signal - to be put on alert as it were - and then look at ADX/DMI together with MACD, RSI and Bollingers to see what's going to happen next ! I also always watch the price action as Candlesticks. I have added Williams %R and Stochastics to my experiments this weekend to see if they are a worthwhile addition. My aim is to have just 3 indicators that work well with the Dax/Dow intraday...... I'M ALMOST THERE !!



Exactly the way I trade !! except I have dropped the Williams% in favour of OBV and Chaikin-MF. I only trade on the daily charts so I only use the Slow Stoch to avoid whipsaws.

One further refinement that I find helps: many traders seem to use too many indicators and to get too cluttered up. The first time I look at any chart, I remove the candlesticks so i can get a sense of what the MAs and SARs are telling me, I find it gives a very clear sense of perspective.

Good Luck !!!!!

what am I saying ?? You're using SARs, DMI/ADX with MACD, Stochs and Bollies. You don't need luck !

what a fkkking idiot this guy was back then, thank fkkk he's come on a lot and learned to discard all this krapp

 

[yiehom]

I really don't use ADX/DMI with any thing else than MA's and TL added to the charts.

 

[Konviction]

I have been using DMI crossover with MACD as confirmation (and the ADX line to check the trend is true) and have had some good success and some terrible failures too.

Has anyone else utilised this system and if so what success have they had.

My experiences have been doing intraday trading on FTSE100 stocks using CFD, I select my stocks using a beta of greater than 1 to ensure there is some volatility.

Avoid ranging markets.

Cheers
Dico

I'm working on the same type of set up: ADX with macd and I am still back testing before going live.

Try taking longs and shorts when a cross over has occured and DMI is + 25.

You want to trade when momentum is high, this will help fiter out other crosses that are just noise.

 

[Konviction]

example

took HD short on 10/9 when adx crossed and dmi >= 25

 

[Konviction]

So far im taking most trades off the 1hr because I dont want to wait for ever for trades to play out, but here is RVBD on daily with ADX signal that I took few days ago.

 

[5MILLS]

Can you explain the MACD to avoid the whip saws trend?
Are you using the standard setup for MACD?
Are you using MACD for daytrading on 2min/5 min charts?

Thanks

I use ADX to tell me whether a market is ranging ONLY.

DI-, DI+, ADX under 25/30, on the 4-hr charts on FX is generally good indication of ranging market.

Since I use MAs, keeping out of ranging markets is useful for me.

MACDs: dont use it.

success: only helps me to stay out of losing whip-moves, so doesnt ADD anything to my profits, but is successful by keeping me out of losing trades.

 

[yiehom]

Add some stoch., bollinger bands, and uh...and..uh. I am forgetting the last one,
it will be perfect

Adx /rsi and macd will be better