wizardalltime Posted March 30, 2011 Report Share Posted March 30, 2011 HI , every forex trader or just beginner. this topic for a comparison between the ADX and the RSI , I hope every body write his opinion of each and why and this is explanation of each . the RSI first :- What Does Relative Strength Index - RSI Mean? A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 - 100/(1 + RS*) *Where RS = Average of x days' up closes / Average of x days' down closes. in my opinion : it helps me when i should enter the market the ADX second :- The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators that form a trading system developed by Welles Wilder. Wilder designed ADX with commodities and daily prices in mind, but these indicators can also be applied to stocks. The Average Directional Index (ADX) measures trend strength without regard to trend direction. The other two indicators, Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), complement ADX by defining trend direction. Used together, chartists can determine both the direction and strength of the trend. in my opinion : it helps me in what amount of points i can get. what`s your opininon about each , please share it . Quote Link to comment Share on other sites More sharing options...
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