ChrisMoody

ADX Trading System Overview! Link To Video!

FX:AUDUSD   Australian Dollar/U.S. Dollar
ADX System Overview

So I Came Across Another Trading System for Only $997. However, if you purchased in the next 24hours the whole system could be Yours For Only $497.

So I decided to Code it. This is only Version 1, and I discuss in the Video What I’ve found so for, some plans for Version 2 of the indicator, and I ask for your feedback on anything you find.

Indicators used in System:
CM_DI_Plus_Minus_V1 (Indicator On Bottom).
CM_ADX_V1 (Indicator On 2nd Pane).
CM_Gann_Swing_Hi_Lo (Indicator on Price Pane). This Indicator was published before…Link Below.
Link In Related Ideas Below

CM_DI_Plus_Minus_V1
Link In Related Ideas Below

CM_ADX_V1
Link In Related Ideas Below

In Video I go over settings and how to customize charts.

Link To Video:
http://vimeopro.com/user32804960/tradingview-indicators/video/112194301

Link To Downloadable PDF Shown in Video:
http://d.pr/f/JX70
ChartArt
2 years ago
I admit, I have not watched your video explanation yet, but if the color orange means sell and blue means buy, then this system would an excellent choice for $997 to buy high and sell lower. Too many false signals with the ADX and the DI plus/minus is also lagging as usual. This is not a critique of your awesome coding skills, only of this system which you adapted for TradingView.

I marked all false signals with a thumbs down:
snapshot
-2 Reply
ChartArt ChartArt
2 years ago
If orange means buy and blue means sell it would make this system only slightly better. Too many signals for buy/sell decisions are missing:

snapshot
-1 Reply
ChartArt ChartArt
2 years ago
Stochastic RSI shows by far much better signals where to buy and where to sell:

snapshot
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Chart Art...If you don't want to watch the video then don't...but your analysis is no where near what I explained in the video.

As far as the StochRSI. I used that indicator the first 5 years of trading. During that time I was required my my mentor to analyze 300 stock symbols every night on 5 different time frames per symbol. So I've analyzed it on well over 2 Million charts. We used other indicators also, and during that time I took $2,500 to $250,000 which gave me the ability to trade full time. That was a LONGGG time ago...but I can tell you this...the StochRSI is a great indicator for Range Bound Markets...Like the chart you showed....it's a below average indicator for Trending Markets....especially Breakout Markets.

So if you filtering for Range Bound Markets you can make a lot of money with that Indicator alone. And one of the items I mentioned in the video is TradingView will be introducing Scanning capability in the future. The ADX is a probably the #1 indicator to use for scanning to find Trending and Range Bound Markets...If you know what to look for in the ADX.

That is the #1 reason I introduced this thought process. Because the majority of traders I speak with don't know how to transition from a Range Bound Market to a Trending Market. You don't use the same type of indicators for both markets.
+4 Reply
LudmilaHanania ChrisMoody
2 years ago
Chris, introducing scanning capability will be super, any idea when? Thank you for the great work you are contributing.
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ChrisMoody PRO LudmilaHanania
2 years ago
Just checked...No set date yet on the Scanner...But it is at the top of the list..so when a few new big features they are working on get released this month and next month Scanning will move up to an active project...I don't think it will be too long...probably early next year...
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ChartArt ChrisMoody
2 years ago
I just watched your helpful video. I was just afraid my browser would crash again, that's why I immediately commented. Well, after watching your video I have to say this indicator makes more sense, but it's with way too many "if X happens" or "if Y happens", basically it needs a lot of additional filters like your Gann indicator to filter out all these wrong signals.

"I've analyzed it on well over 2 Million charts".
Wow, that's a lot! I'm just trading since Q2 this year, still much to learn :) I hope I didn't sound disrespectful.

"The majority of traders I speak with don't know how to transition from a Range Bound Market to a Trending Market. You don't use the same type of indicators for both markets."
Yes, the Stochastic RSI is sometimes tricky, I guess in these scenarios it's better to use something like the MACD or PPO?

"The ADX is a probably the #1 indicator to use for scanning to find Trending and Range Bound Markets"
Each time I tested the ADX so far I wasn't happy with its signals. Maybe I have to test for another time after watching some video explanations about how to distinguish these different types of markets. At least the ADX is ahead in terms of signal quality compared to the Vortex and the some other even more exotic trend finding indicator I forgot the name of.
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ChrisMoody PRO ChartArt
2 years ago
ChartArt...your never disrespectful....and I never mind anyone challenging what I might say...however when they do I typically respond with statistical facts that I know are true...b/c I'm very careful not to say things "I Think" to be true...

The video was average at best...b/c I haven't done any statistical research on this system this guy was promoting. So there were a lot of "Maybe This" etc. I'm in no way saying this system is great...I'm not trading it...

What I'm trying to do is show people how you can take a concept, evaluate it, and if I move forward with the strategy show how I develop filters to turn a "Concept" into a statistical based system. This is easier said than done...and the reality is to find a truly great system with a statistical edge...you go through 20, 50, or maybe even a hundred different systems or thought processes....before you find one that truly gives you a statistical edge.

So this system...I might post 10 different updates...and develop it in to something...or I may kill it...and move on.

You'll see me do 3 things in the future.
#1 I'm moving to videos...because it shows people a visual vs interpreting what someone writes. And I can do a 10 minute video and show more than it would take me an hour to write out. Plus once we find a worthwhile topic people can follow along at their leisure and see the progression over time.

#2 I'm going to introduce some of these thought processes that I see other people market...b/c traders need to learn to evaluate all the stuff that is being marketed and learn how to come to a conclusion by doing their own research, vs. just taking what the person marketing the system claims.

#3 I'm going to start introducing some of the methods I've actually used and made money with. For example I'm going to be doing a video and/or video series on How I traded Pivots...have had a lot of requests from the post I ddi saying "I used this system and made a living trading nothing else for 2 years".

The developers are making several modifications to one of the items we have access to on TradingView that I use...and I can easily make a living using this method alone...it will be a powerful concept for people to learn once the modifications are made. I'm keeping it a "Secret" until I can actually show it...but most people are using indicators that "Lag" by definition....The system I'm going to show is Real Time...No lagging indicators...And it will give people a statistical edge over Retail traders that are using lagging indicators.

Lots of good stuff coming in the future...

I always appreciate your posts...and by the way...keep a look out for a major announcement from TradingView either this week or next!!! It's going to be very impactful to the TradingView community...
+6 Reply
ChrisMoody PRO ChrisMoody
2 years ago
Oh and remember from this process we got the Sling Shot System and usgears Sling Shot Crusher....I haven't done statistical research on that one yet either...waiting for strategy capability to be released...But people claim to be making money with it...
+1 Reply
ChartArt ChrisMoody
2 years ago
Awesome. I recommended four different online chart scanning tools three months ago to the admin and he said "this is the highest priority at this moment" so I'm delighted to hear the release is coming closer.

Regarding the videos, it's great that you upload them (as pro user) to Vimeo so that we don't have to deal with advertisement. But I personally would love to see you upload them to Youtube, too. Because Youtube offers a feature to watch every video in 1.5x or 2x speed, so I can get the information in half the time, cutting a 20 minute video to 10 minutes of time (... so I can watch two 20min videos in the same time it takes to watch one with 1x speed). You can easily upload your videos to several video hosters using: http://www.oneload.com/ (by TubeMogul)

And I'm personally still testing many ideas for systems, that's why I was so harsh regarding the ADX system, because you already gave us other system ideas like the pivot bands, which are much more reliable and therefore better. I assume if you combine the pivot bands with Bill William's fractals and something like Ichimoku cloud as a system you have already something statistical superior to the ADX system. I'm glad we can prove that next year with backtesting :)
Reply
ChrisMoody PRO ChartArt
2 years ago
I 100% agree with you in watching videos at 1.5 or 2X speed...I've watched everything that way for years. It's so much more efficient.

I'm not going to upload them to YouTube b/c technically I need a bunch of disclaimers...but I feel only posting private links on this site people will have common sense. On YouTube I have to really watch what I say and add disclaimers to videos...Also you get a bunch of random people making unaware comments b/c they came across the video and watched it with no context.

I've used a product called MySpeed for years http://www.enounce.com/myspeed ...they have a windows and Mac version...you can get a free trial...and if you like you only need the $29 version. The more expensive version allows you to do the same with downloaded videos...but if you use windows, windows media player does the same thing...and if you use a Mac MPlayerX in the Mac app store is free and is amazing giving you complete control of video speed...and will play almost any type of video file..
+1 Reply
pvasq1
2 years ago
Chris, great job! I like your idea of color coding the bars based on the trend. The Gann conf is useful as well. I have used ADX before and quit because the DMI lags too much.
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ChrisMoody PRO pvasq1
2 years ago
Thanks...What I didn't do a good job of is emphasizing how valuable the indicator is in evaluating what type of market you are in....Range Bound vs. Trending...I'll cover that more in the future...
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thank you very much chris
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ChrisMoody PRO manijeh.kazemi.33
2 years ago
Anytime...
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hamdani.hans ChrisMoody
2 years ago
Hi Chris, can you link the video to youtube, because my internet service provider block the access to the website. Thank you.
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ChrisMoody PRO hamdani.hans
2 years ago
I'm sorry about your ISP blocking the site...however if you contact them there should be a work around. It's hosted through Vimeo Pro...this is the #1 hosting site for professionally done videos. It's completely secure. I have a feeling you have secure settings set up and the link to Vimeo would just need to be added to your "Safe" websites.

I'm not going to upload them to YouTube b/c technically I need a bunch of disclaimers...but I feel only posting private links on this site people will have common sense. On YouTube I have to really watch what I say and add disclaimers to videos...Also you get a bunch of random people making unaware comments b/c they came across the video and watched it with no context.
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hamdani.hans ChrisMoody
2 years ago
Thanks Chris
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ChrisMoody PRO hamdani.hans
2 years ago
Thanks for saying so....
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console
2 years ago
wow mate thansk this is really really great, giving great results
+1 Reply
ChrisMoody PRO console
2 years ago
Thanks
+1 Reply
gomuge PRO
2 years ago
Chris,
1- you say your trading system is to buy, but where can we buy it ?
2- I did not know about this scanning capability coming in december and I have seen anything about it. Do you know if this feature will allow us to scan the market and will list all equities found regarding specific system signals ?

Thanks.

Reply
ChrisMoody PRO gomuge
2 years ago
I won't know about the scanning capability until I can get access to demo server to do a video on it. As many of the new features that will be released soon...the first version will be a Beta Version...which may or may not allow the capability your looking for....but I assure you the final scanner will be as advanced as anything offered anywhere.

Regarding item #1...this is not my trading system...it has not been developed in to a buy or sell trading system...this is explained in the video.
Reply
stenor PRO
2 years ago
I like the work you are doing in attempting to differentiate between range bound and trending markets. I believe developing an effective technical method of doing this would be the greatest contribution to technical analysis that anyone currently could make. I look forward to seeing what you will develop along this line in the future.

I agree with you that Wells Wilder's groundbreaking work on this concept (DMI and ADX) of differentiating between trending vs non-trending markets is the best work to date along this line. However, there is clearly room for improvement and innovation on this great indicator which does have its difficulties. I really appreciate all the great contributions and help you offer to the Trading View community and look forward to more.
Reply
ChrisMoody PRO stenor
2 years ago
Thanks...I completely agree with everything you said...one idea I have is changing the settings of the DMI significantly changes the results...One day I will get around to testing the settings and adjusting for different types of traders....whether they are looking for short term price movement or longer term moves...

There is a lot of improvement needed in this area...
Reply
stenor PRO
2 years ago
One thing I have noticed about the +DI and -DI lines is that when the +DI is rising and the -DI is falling it is often a good time to be long. And conversely when the - DI is rising and the +DI is falling it is a good time to be short. This situation often develops before the +DI and -DI cross.

I have also noticed that when the +DI and -DI come very close together for a time (a DMI Squeeze) and then begin decidedly moving away from each other, it often signals a good entry point.

The problem with this is that the +DI and -DI lines are very choppy so it can be difficult at times to determine when the lines, overall, are rising or falling. Perhaps some non-lagging smoothing of these lines could help.
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ChrisMoody PRO stenor
2 years ago
Agree....I'll get around to testing at some point...my first though is adjusting the settings would have the same effect as creating a soothing mechanism with the settings left at 14...but an Idea just popped in to my head that I will test out soon...I will let you know if I find it valid...
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stenor PRO ChrisMoody
2 years ago
i really look forward to what you will find in creating the most effective way to use the DMI and ADX, or any other method to help differentiate between a trending and non-trending market.

A new idea just occurred to me I want to share with you just in case it will spark additional ideas for you. This one is about the +DI and -DI lines. The idea is to:
1) First invert the -DI (by subtracting it from 40) so that it moves up and down with the +DI.
2) Next smooth both the +DI and -DI values (like with a 5 period RMA or so).
3) Then Add the +DI and -DI together and divide by 2 to create a midpoint of the two lines.
4) Finally Smooth the result (with something like a 2 period RMA) to create a single directional
signal.
5) Then calculate a second version of this line shifted (one period or so) ahead. Longs would
be when the first Smoothed +DI/-DI is above the second shifted line and shorts would be
when below.
Reply
ChrisMoody PRO stenor
2 years ago
I can usually visualize advanced code in my head and know instantly if it's worth my time...You have me a little stumped...B/c I'm having a hard time visualizing what the outcome would tell us.

I'll get to this one eventually...just to see...when I'm done I'll post a chart with the outcome.

Feel free to remind me if I haven't responded within a week.
Reply
stenor PRO ChrisMoody
2 years ago
Here is some code you can try. Feel free to use and alter the code if you choose to. I think some sort of signal line may help the Combined and Smoothed +DI/-DI Line. My idea above of using an offset of the combined and smoother +DI/-DI line did not work so well. In the code below I am using simply the slope of the line for direction. It can be improved, I believe. I have not altered the ADX calculation. There is definitely room for improvement with it as well.

<pre><code>

//Directional Movement Indicator by Wells Wilder
//Modified by Steve Nordholm 11-20-2014

study(title="Directional Movement Index v5 Adaptation", shorttitle="DMI5A", precision=1)

//DMI Inputs
len = input(14, minval=1, title="DI Length")
lensig = input(14, title="ADX Smoothing", minval=1, maxval=50)

//Calc DMI
up = change(high)
down = -change(low)
trur = rma(tr, len)
plus = fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / trur)
minus = fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / trur)
sum = fixnan( plus + minus )
adx = fixnan( 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), lensig) )

//Calc DI Average of (Plus DI + Minus DI)
di_plus = rma( fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / trur), 5 )
di_minus = rma( 40 - ( fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / trur) ), 5 )
di_sum = fixnan( di_plus + di_minus )
di_avg = rma( di_sum / 2, 2 )

//Plot DMI
//plusplot = plot(plus, color=green, title="+DI", linewidth=3, offset=1)
//minusplot = plot(minus, color=red, title="-DI", linewidth=3, offset=1)

//Plot DI Averages
di_col = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

plot(di_avg, color=di_col, title="DI Average", linewidth=3, offset=1)

//Plot ADX
plot(adx, color=blue, title="ADX", linewidth=3, offset=1)

//DMI Background Color
bgcoldiavg = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

//Plot Background Color
bgcolor(bgcoldiavg, transp=90, offset=1)

</code></pre>
Reply
stenor PRO stenor
2 years ago
Here is the rest of the code:
<pre><code>

//Plot DI Averages
di_col = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

plot(di_avg, color=di_col, title="DI Average", linewidth=3, offset=1)

//Plot ADX
plot(adx, color=blue, title="ADX", linewidth=3, offset=1)

//DMI Background Color
bgcoldiavg = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

//Plot Background Color
bgcolor(bgcoldiavg, transp=90, offset=1)
</code></pre>
Reply
stenor PRO stenor
2 years ago
The code above was cut off, here is the rest of the code again:

<pre>
<code>

//Plot DI Averages
di_col = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

plot(di_avg, color=di_col, title="DI Average", linewidth=3, offset=1)

//Plot ADX
plot(adx, color=blue, title="ADX", linewidth=3, offset=1)

//DMI Background Color
bgcoldiavg = di_avg > di_avg ? lime :
di_avg < di_avg ? red : yellow

//Plot Background Color
bgcolor(bgcoldiavg, transp=90, offset=1)

</code>
</pre>
Reply
stenor PRO stenor
2 years ago
Chris, As you can see I am having trouble sending you the code. What is the best way to do that in this system. I am enclosing the code inside the pre and code html tags. As you can see only part of the code is posted before it is cut off. Is there a better way to do this? Also is there a way to edit a post after it is made?
Reply
stenor PRO stenor
2 years ago
It looks like when this message system encounters a square bracket in code (to access a previous value of a data series) it messes up and stops.
Reply
stenor PRO stenor
2 years ago
I will try posting the code again. This time I have removed all square brackets and simplified the code to just produce an ADX line (Blue) and the combined +DI/-DI lines (Green). What I am attempting to do is create an easier to read directional line for the DI components of the DMI. It is in raw form now. My hopes is that it will spark additional ideas for you, and perhaps you can find a way to improve it. Sometimes it signals an earlier directional change than the cross of the DI lines, sometimes it is later. It whipsaws at times if you just use the slope of the line to indicate direction. Perhaps a signal line added to it would help.
<pre><code>
//Directional Movement Indicator by Wells Wilder
//Modified by stenor 11-20-2014

study(title="Directional Movement Index v5 Adaptation", shorttitle="DMI5A", precision=1)

//DMI Inputs
len = input(14, minval=1, title="DI Length")
lensig = input(14, title="ADX Smoothing", minval=1, maxval=50)

//Calc DMI
up = change(high)
down = -change(low)
trur = rma(tr, len)
plus = fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / trur)
minus = fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / trur)
sum = fixnan( plus + minus )
adx = fixnan( 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), lensig) )

//Calc DI Average of (Plus DI + Minus DI)
di_plus = rma( fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / trur), 5 )
di_minus = rma( 40 - ( fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / trur) ), 5 )
di_sum = fixnan( di_plus + di_minus )
di_avg = rma( di_sum / 2, 2 )

//Plot DMI
plot(di_avg, color=green, title="+DI/-DI Avg", linewidth=3, offset=1)
plot(adx, color=blue, title="ADX", linewidth=3, offset=1)
</code></pre>
Reply
ChrisMoody PRO stenor
2 years ago
you can PM me....or if you want to post the code for others set up a free account at pastebin.com ...you can post the link after you enter the code there.
Reply
vthen
2 years ago
Hi Chris,
Just one basic question regarding your video: There is no audio. Is it as is, or maybe it is my system?

Cheers,
Vincent.
Reply
console vthen
2 years ago
your system
Reply
ChrisMoody PRO vthen
2 years ago
Just double checked...there is volume on the video...
Reply
vthen ChrisMoody
2 years ago
Got it! Thanks. Strange audio bars - all of the same height - never seen before.
Reply
ChrisMoody PRO vthen
2 years ago
Good...Glad it's working for you.
Reply
Kautilya PRO
2 years ago
Thanks Chris this is awesome.. ..
Reply
ChrisMoody PRO Kautilya
2 years ago
No Problem
Reply
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