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Super ADX and Trend Wave Indicator


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Trend wave indicator is not a repainter...however its not that great an indicator either...in periods of consolidation, will produce enough false signals to wipe out all the gains made by the good signals.

 

We as traders sometimes assume that, just cause an indicator is a non repainter, its got to be the holy grail ...cause we fell that the indicator is being honest with its non repainting signals,but thats far from the truth. Its kind of like using the flawed logic...Just cause you always end up telling the truth,you expect to be exempt from all the trouble...sometimes telling the truth can get you in more trouble.... telling the truth is good but cannot protect you from consequences that follow... I am sure all the honest married traders in this forrum understand that..lol

Ofcourse being honest is the better alternative but is not the holy grail to leading a good life....BEING PRACTICAL IS.

I prefer non repainting indicators to repainting ones...thats for sure though.

The only indicator that would qualify to be a holy grail indicator would be one that would give us a heads up wether the market is trending or consolidating...and that too real time.

The reason non repainting indicators fail is cause they are not able to tell us real time if the market is gonna trend or consolidate.

Until we get such an indicator we are gonna have a lot of these scammers milking gullible traders dry...

The Ichimoku indicator, Bollinger bands are few indicators that have a bit of forecasting ability ...to predict in real time wether we are likely to trend or consolidate...but then even it has its great many limitations.

However thanks to everyone who has made it possible for the rest of the forrum to have a look and feel of the Trend wave and super ADX indicator...

 

Regards

Heisamit

Edited by heisamit
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Trend wave indicator is not a repainter...however its not that great an indicator either...in periods of consolidation, will produce enough false signals to wipe out all the gains made by the good signals.

 

We as traders sometimes assume that, just cause an indicator is a non repainter, its got to be the holy grail ...cause we fell that the indicator is being honest with its non repainting signals,but thats far from the truth. Its kind of like using the flawed logic...Just cause you always end up telling the truth,you expect to be exempt from all the trouble...sometimes telling the truth can get you in more trouble.... telling the truth is good but cannot protect you from consequences that follow... I am sure all the honest married traders in this forrum understand that..lol

Ofcourse being honest is the better alternative but is not the holy grail to leading a good life....BEING PRACTICAL IS.

I prefer non repainting indicators to repainting ones...thats for sure though.

The only indicator that would qualify to be a holy grail indicator would be one that would give us a heads up wether the market is trending or consolidating...and that too real time.

The reason non repainting indicators fail is cause they are not able to tell us real time if the market is gonna trend or consolidate.

Until we get such an indicator we are gonna have a lot of these scammers milking gullible traders dry...

The Ichimoku indicator, Bollinger bands are few indicators that have a bit of forecasting ability ...to predict in real time wether we are likely to trend or consolidate...but then even it has its great many limitations.

However thanks to everyone who has made it possible for the rest of the forrum to have a look and feel of the Trend wave and super ADX indicator...

 

Regards

Heisamit

 

This is one of the best true posts that I have read this year about trading & indicators.

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Just in case you care to know, Trendwave logic is pretty simple. The indicator looks at the difference between a fast (5 bars) simple moving avg and a slower (21 bars) exponential MA. Up/down is signaled when this difference is larger/smaller than previous bar's. So it has all the issues inherent in MA based indicators.

It does not cheat by looking ahead like some commercial indicators so the historical performance should be just as good or as bad as its real time performance.

 

josephR

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What about SuperADX,josephR?Can you tell us more about it's logic?

 

the logic behind the SuperADX is when it is tranding in range at current time frame it will be a break out. just like eu toady, yesterday was trade range as between 1.4410 and 1.4390. what happen around Asian session? big out break, 130 pip plus.

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What about SuperADX,josephR?Can you tell us more about it's logic?

 

Well, I can certainly make an attempt. It is not as straight forward as trendwave, so patience is called for!

First, the Money line is an 89 period lwma. code attempts to find places where change in trend strength will signal a reversion to mean or what he calls the money line.

It would be educational to just drop the "SupportingADX" which is called on by Super ADX on the chart and note places where the line crosses up/down the 35 level and 10 and peaks and bottoms.

Now for the details:

-SupportingADX:

you can view price movement as the vector sum of a push up vector and a pull down vector. One way to measure the strength of each component is to find the ratio of the respective move over max movement in either direction. Another words: high (low) of this period -high (low) of last period over max movement (either bar range, or current high or low relative to last close). If you take the abs value of the difference in strength, and smooth that over a 14 period average, as the difference increases one side or the other is winning and when it stops and flips, then chances are directional movement will slow and flip as well.

 

SuperADX:

SuperADX looks at a few "flips" or changes in direction to arrive at its conclusions. One is the flip in trend strength as above. The other one is a simple macd flip over its signal line and another is a flip in the acceleration (second MA) of deviation of typical price ( (h + l + c)/3) to its exp average. Another is number of flips in the past 16 bars!

Depending on which occurs and if flips happen at the same time or in isolation, different signals are generated.

For example, a red bar is generated when the trend strength flips from a very lethargic (less than 10) position, signalling strength will come into price movement in either direction.

Or a white bar is generated signalling end of trend when a strong (>35) trend strength

flips down. A few of these in a row, probability of a reversal is much higher as directional strength is negated by the opposing force multiple times.

 

I am not sure if I have made it any clearer, but I hope this gives you an idea of what the code is doing. I would welcome others to add or correct.

 

Happy trading,

josephR

Edited by josephR
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