RE: Steemit Crypto Academy Season 3-Week 7 Trading Crypto With Average Directional Index (ADX) Indicator
Hello @mccoy02,
Thank you for participating in the 7th Week Crypto Course in its third season and for your efforts to complete the suggested tasks, you deserve a 5/10 rating, according to the following scale:
Originality | Compliance with topic | Consistency of method | Quality of analysis | Clarity of structure & language |
---|---|---|---|---|
My review :
Average work in which you tried to answer the questions in your own way and I have a few points I want to raise:
- A simplified explanation of the indicator and its use, the final operation is ADX = Sum of n [((DI +) - (DI-)) / ((DI +) + (DI-))] / n, So to get the correct ADX result, you need to calculate DX values for at least n periods then smooth the results.
In general, the best setting is the 14-period signal indicator.
In general, the selection of indicator settings depends on the chosen trading system and the type of trader. A higher indicator period is reliable but takes time to give signals, while a lower indicator period generates a quick indicator crossover and sometimes generates unreliable trend information.
You just presented how to determinate the different direction of the trend without addressing the role of the indicator in calculating the strength of the trend.
You didn't answer the question :
And how do you filter out the false signals?
- The last question, your answers were superficial as you did not go into details and did not provide some illustrative examples.
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01
Thanks for the feedback sir correction noted