By the end of the seventh week of Season 3 of the Homework task on August 14, 2021, I would like to thank the 88 students who participated this week by submitting their essays to answer the assignment.
This week we have presented the most important and best methods of trading using the ADX indicator in a detailed explanation for you to use and incorporate into your trading strategy.
Spotting a strong trend movement is one of the most important skills that all traders possess. Chasing the trend is the most popular technical method for profitable trading. But stock prices spend more time consolidating and less time trend movement, so trend trading is prone to frequent pullbacks. So before using trend trading, it is important to know whether the stock is in a trend or not.
I hope that all users who studied this week will benefit from the set of information and analyzes provided to become familiar with determining the type of trend in the market “Is it an uptrend or a downtrend?” as well as knowing the strength of the trend in the cryptocurrency market.
We always mention that the main goal of our Steemit Crypto Academy community is to ensure knowledge and promote opportunities for quality learning that are equitable and inclusive in the cryptocurrency field for all.
After that, I asked the students some questions to evaluate the extent to which they understand the topic and evaluate the cognitive gains they have achieved from reading the lesson.
The questions to be answered are :
1. Discuss your understanding of the ADX indicator and how it is calculated? Give an example of a calculation. (Screenshot required)
2. How to add ADX, DI+ and DI- indicators to the chart, what are its best settings? And why? (Screenshot required)
3. Do you need to add DI+ and DI- indicators to be able to trade with ADX? How can we take advantage of this indicator? (Screenshot required)
4. What are the different trends detected using the ADX? And how do you filter out the false signals? (Screenshot required)
5. Explain what a breakout is. And How do you use the ADX filter to determine a valid breakout? (Screenshot required)
6. What is the difference between using the ADX indicator for scalping and for swing trading? What do you prefer between them? And why?
7. Conclusion:
Homework correction :
Discuss your understanding of the ADX indicator and how it is calculated?
The ADX is a momentum indicator that allows knowing the density of a trend, namely strong or weak, it is used with the DMI indicator and depends on the positive directional indicators DI + and negative DI-.
It generally evolves between the value zero and 100 and takes all its meaning above 25 which is generally interpreted as a sign of a strong trend, that is to say, a trend likely to continue.
Welles Wilder considers that a stock or a security is in a trend when the ADX indicator exceeds the value of 25, he also considers that a security is in the absence of a trend when the indicator is below the value of 20.
There remains a zone of neutrality, that between 20 and 25, in which it can be considered that for a stock market with little volatility, we can accept an ADX value below 20 as a critical threshold, after which the stock should be considered in the trend. , because volatile stocks are usually accompanied by higher values for the ADX indicator.
HOW TO CALCULATE
ADX = MA [((+ DI) - (-DI)) / ((+ DI) + (-DI))] x 100;
What are its best settings? And why?
For trading in any of the time slots, the standard setting of the ADX indicator is suitable. Traders who work exclusively with technical analysis can customize the program according to their needs. There is already a personal matter for everyone, but for beginners, it is better not to change anything in the settings and to leave everything as is. It is allowed to enter a trade even when, with a clear trend, the indicator line exceeds the 30 level. It is worth opening a position with a small lot.
How do you filter out the false signals?
An explosive mix of ADX and MACD
The most harmonious ADX is combined with MACD. If you install two tools on a chart, they will exclude false signals from each other. When ADX indicates a strong move in the market, the MACD indicator is able to show the direction of that move. This will take away the confusion and difficulties that traders face just starting to trade with this tool.
Results, Observations and Suggestions:
This week saw an increase in the number of assignments submitted by our dear students by a respectable percentage, as the number of articles reached 88 from 55 last week.
We saw a slight increase in premium content work accounting for 21% (compared to last week of course) of total writing, compared to a decrease in articles with good content reaching 26%, as well as articles with average content. rated at 36%.
For the overall successful and rewarded homework to exceed 85% versus 15% who failed to achieve above-average grades, if that's anything to say, the seriousness with which students get what 'they are asked and how keen they are to learn and do their best to get the best grades and the best results.
We also notice the absence of posts with 0% plagiarism again which we always look forward to in addition to good content and I hope it will stay that way forever.
Two articles were classified out of competition due to non-compliance with the conditions of participation, and it should be remembered that the conditions of participation require a reputation of 60 and 500 SP with a commitment on the completion time, therefore we invite participants to adhere to these conditions so that the preparation effort is not wasted without getting an evaluation and reward.
TOP 3 Homework week 7 season 3.
We would like to first thank all the participants for their challenges and inspiring achievements, and we hope that the spirit of this competition will continue for as long as possible, and we hope that the culture of challenge and facing obstacles will spread in all communities.
We are pleased to announce the names of the three winners of the first week of the third season competition, which was held from 7th August to 14th August 2021.
Cc:-
@steemitblog
@steemcurator01
@steemcurator02
Thank you professor @kouba01 for selecting my post in top 3, hope you liked it!!
Thank you.
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Thanks so much for recognizing my work.🤗
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Thank you for the nomination
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