This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
There is really only one advantage that the TDI has over the ADX, and its visual. There may be a way to do the same thing with the ADX, but this was easier.
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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
December 29th, 2007 at 3:01 pm
It’s great to be able to program in ideas, to get your chart package to spot things for you. Seems like you are making real progress there!
You can see that there are times when you get breaks in a string of dots, when the TDI takes a breather and pulls back a little. I wonder if you compare the TDI with a moving average of itself, if you can hold on through some of those TDI pullbacks? You know, so that the TDI is considered rising if it’s above its own 8MA, or something. That’s one method, anyway. In your own trading, you’d probably hold on through those gaps in the dots, but a backtest might be improved that way. The concept of what it means for a line to be “going up” or “going down” is one of the trickiest things to program, even though it’s simple for humans to determine.
December 29th, 2007 at 4:14 pm
excellent idea! i honestly couldn’t figure out how to overcome that problem…i will try that out this weekend