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RE: Advanced Course - Trading Crypto with Average Directional Index (ADX) Indicator || Homework post Crypto Academy

in SteemitCryptoAcademy3 years ago

Hello @erode,
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 3/10 rating, according to the following scale:

OriginalityCompliance with topicConsistency of methodQuality of analysisClarity of structure & language
(0.25/2)
(0.75/2)
(0.5/2)
(0.5/2)
(1/2)

My review :

ADX = [|(DI+) -(DI-)|] / [|(DI+) + (DI-)|] * 100.

  • This operation is wrong, the correct one is: DX = 100 X ((DI+) - (DI-)) / ((DI+) + (DI-))
    ADX = Sum of n [DX] / n, So to get the correct ADX result, you need to calculate DX values for at least n periods then smooth the results.

They are very helpful and needed to be able to trade with the ADX indicator.

  • The ADX can be used without the DMI, but the DMI makes it easier to read the indicator. The DMI shows the direction of the market. Its operation lies in the fact that it measures the highest and lowest prices over a period.

  • In the second question, your answer about best setting was superficial as you did not go into details and did not provide some illustrative examples.

  • The same goes for how to extract the false signals and determination of breakout points by using the ADX indicator.

  • A short explanation of two methods of trading with ADX indicator, as you confined to stating generalities without going into more details.

Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01

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