What do use in your study sets to confirm if a movement has enough energy to continue it's movement after a MA crossover event?

Mr_Wheeler

Active member
A lot of times the cross-over events are like a rocket that starts to take off the but then falls back onto the launch pad.
 

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I use this ADX Label

Code:
input length = 14;
input averageType = AverageType.WILDERS;
#input Label_Color_Choice =  {default "gray", "white"};

def ADX = DMI(length, averageType).ADX;

AddLabel (ADX > 30, "ADX > (30) UP ",
(color.GREEN));
 #GetColor(Label_Color_Choice));
AddLabel(ADX < 20, "ADX < (20) DOWN ", #GetColor(Label_Color_Choice));
(color.RED));
 
I also use RSI Label
Code:
#RSI label for upper study


input length = 14;
input over_Bought = 70;
input over_Sold = 30;
input price = close;
input avg_type = AverageType.WILDERS;
 
def NetChgAvg = MovingAverage(avg_type, price - price[1], length);
def TotChgAvg = MovingAverage(avg_type, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;
 
def RSI = round(50 * (ChgRatio + 1),2);

 
AddLabel(1, (if avg_type == 0 then "RSI SMA" else if avg_type == 1 then "RSI EMA" else if avg_type == 2 then "RSI WMA" else if avg_type == 3 then "RSI Wldr" else "RSI Hull") + ": "+rsi+""+ if rsi==rsi[1] then " NC" else if  rsi>rsi[1] then " UP" else " DN", if between(rsi,30,70) then color.yellow else if rsi > 50 then if rsi<rsi[1] then color.dark_green else Color.GREEN else if rsi < 50 then if rsi>rsi[1] then color.dark_red else Color.RED else Color.DARK_GRAY);


#addlabel(yes,"RSI " +rsiavg, if rsiavg>70 then color.green else if rsiavg<30 then color.red else color.yellow);

######
 
@BobHug @Mr_Wheeler
Here are a few of the write-ups on the internet as to how to implement an ADX-RSI strategy:

The ADX/RSI represent only the trend/momentum component of your strategy. Support&Resistance and Volume are the other two basic components that every good strategy requires.
Also, remember that indicators only indicate, not predict - 99% of stock movement is based on price or volume.. Look at market and cycle and analyze consolidation/expansion periods to provide insight into market structure and price action. And evaluate if the volume is there to drive the price.
 
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