What are good indicator with strategy for determining market direction w/ time of direction?
i saw similar question answered by KACEY C..but KACEY C details would be greatly appreciated
kacey c said
Best Answer - Chosen by Voters
1) ADX, determine if the market is trending, or trading (flat/sideways)
2) Use that to determine if you should be using a lagging indicator (EMA, MACD, etc.), or an oscillator (RSI, Stochastic, etc.)
3) Confirm the signal with one of the accumulation/distribution indicators, (CCI, MFI, A/D line, etc.)
- cactusgeneLv 77 years agoFavorite Answer
Well the answer is none of the above, because all of these indicators are correct at best 55% of the time. There simply is NO consistently reliable indicator to forecast the market.
- DavidLv 77 years ago
What's your time frame. Days, weeks, hours, minutes?
Without a time frame, you can't even get started.
Develop a trade plan and test it on a simulator.
I think you'll find the ADX is too subjective and late. You're already lagging and now you're going to use another lagging indicator? Now you're really going to be late, with high risk of a pullback. But if you use good trading strategy and buy on the pullback, you still may be okay.