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Old 05-24-2007, 03:23 PM
resalin's Avatar
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Who knows this indicator?

Can anyone tell me those indicators that are used to measure the trend or strength of trend?

I would like to know indicators that show if the movement is up or down or even sideways.

Thanks for any suggestions.
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Old 05-25-2007, 06:37 PM
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Quote:
Originally Posted by resalin
Can anyone tell me those indicators that are used to measure the trend or strength of trend?

I would like to know indicators that show if the movement is up or down or even sideways.

Thanks for any suggestions.
ADX is one of the best indicators to use when you want to see if you are in a trending market or a ranging market. Trending market is when you want to use trading system based on moving averages or something else. Ranging market is good for trading systems based upon RSI, stochastics, MFI or whatever.

ADX values hovering around 20 mean you are in a ranging market, so use stochastics or RSI or whatever, then when it gets up towards 40 then you know you are in a trending market and you can use your favorite moving average system.

Oh yeah and if you want to know the strength of a trend, MACD is the difference between two moving averages, so you can use that. Or you can just put some moving averages on your price action and judge from angle and separation.

Here is a screenshot to show you what it looks like.
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Last edited by nittany1; 05-25-2007 at 06:42 PM.
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Old 05-25-2007, 07:50 PM
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thanks man, now i understand some of the basic on ADX...
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Old 06-18-2007, 06:59 PM
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ok what's MFI?

is it a standard indicator on MT4?

ok nevermind already...money flow index
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