ADX: Lets review this critical indicator!

Joe reviews the ADX indicator and explains why its so useful to his everyday trading setups.
If you have an interest in learning one-on-one from Joe, email [e-mail]. He will teach technical analysis in more detail or help with developing an investing/trading plan.
Joe Rabil is dedicated to providing unbiased analysis of stocks and markets. Helping investors use time-tested bottom-up technical analysis
The Technical Analysis that he teaches uses simple momentum indicators like the MACD and ADX to analyze and predict trends or trend changes using divergence and overbought/oversold readings. Joe is a recognized expert on Trend, Trend Momentum, and Multiple Time Frame Analysis. Here is a link to his book "Invest Like a Pro": www.amazon.com...
Link for Discount on TC2000 Software and brokerage:
www.tc2000.com...
He displays the analysis in an easy to understand way, even for beginner stock trading.
The videos help with:
-Understanding how to use multiple time frame analysis
- Learning simple technical Analysis
- Effective chart patterns
-Tools for improving timing and reducing risk using multiple time frames
- Measuring trade targets
- Identifying good stops for trades
And most importantly trying to give the right mindset to trade efficiently.

[@az21an]

Thank you for this great video. you are the best one explain ADX I ever seen in KZbin.

[@investlikeapro7977]

You're very welcome!

[@U40workoutathome]

Since I learn how to use adx for my stock selection, it becomes much easier and clearer than before. I am trying to teach myself to strictly follow the concept that trend is friend and buy higher sell higher as long as we have adx new and we are in the first or second pullback only. During the last month, since I have started to learn from your channel and book, my trading knowledge have been improved considerably. Thank you for everything, teacher 🙏

[@investlikeapro7977]

My pleasure. Thanks for all the feedback.

[@rustle9369]

I started using DMI a while ago just kind of looked intersting and its great

[@investlikeapro7977]

Great to hear!

[@itm_randy]

before i continue watching this, absolutely stellar video on how to use ADX and providing examples - earned a sub and will give a look at your book

[@investlikeapro7977]

Great! Thanks for the feedback

[@thirupathit9803]

Really an indepth and excellent content and wonderful teaching. Hats off.👌👍🙏

[@investlikeapro7977]

Thanks a lot

[@ruifsimoes16]

So enlightening.. thanks a lot Joe for your teaching.

[@investlikeapro7977]

Thanks. Good to hear.

[@wilmeramadorherrera8385]

good stuff

[@investlikeapro7977]

Thanks. Glad you found it useful.

[@DanPocketRocket]

Thank you! Excellent vid! Basically LBR Grail / ADXtender MTFA

[@investlikeapro7977]

I appreciate it. That is good synopsis yeah w an exhaustive ADX divergent pattern as well.

[@alexandrer6860]

Like !

[@bassem808]

Thanks joe for sharing such valuable knowledge,,

[@investlikeapro7977]

Glad you liked it!

[@ChaplainDaveSparks]

I’m trying to use ADX for making option trades. In particular, _”low”_ *ADX* for making _iron condor_ trades that profit from a sideways market. How low on ADX is _”low enough”?_ I set ADX < 15 as a scan filter (on ThinkOrSwim) but I’m not sure if that’s the best level or not.

[@investlikeapro7977]

Using a 14,14 setting on ADX, I think 15 is the right number. I use a 13,8 setting for ADX and with that setting it could be closer to 10.

[@khunii2188]

Really informative. Thank you.

[@investlikeapro7977]

Good to hear. Thanks for the feedback

[@khalidbenjamin9179]

Hi Joe which moving average reriode crossover is best for a 5 minute time frame. I see on your you tube videos that you usually use the 18 and the 40 moving average I want to build a strategy with the adx.. the same start strategy you use in this video.. (ADX: Let's review this critical indicator) Which video of you on you tube can you recommend to me to learn the best from the adx thanks in advance khalid from holland

[@investlikeapro7977]

I use an 18 and 40 sma on all my charts. I recommend going playlists on my channel and click on the ADX one. Probably should go through all of them. There is a lot of detail with this indicator.

[@dakscalcaldona2141]

thank you sir for another very informative video

[@investlikeapro7977]

Glad you enjoyed it

[@khalidbenjamin9179]

hi joe.. i want to look for support and resistance on a 1 hour chart and then use the adx on a 1 or 5 minute chart. For a crossover of the di and the adx line above 25 . I try 5 to 10 pips strategy..

[@investlikeapro7977]

Definitely a strategy worth looking into. Should probably due some testing first.

[@Raya7766]

Excellent information. Thank you. Wouldn't it help if we add other indicators such as rsi as well?

[@investlikeapro7977]

I don't have a problem with RSI but based on how I use MTF, it isn't necessary, in my opinion.

[@shubham73654]

💯💯💯💯💯💯

[@aksy970]

this knowlegde is just gold! im going to havr to watch this a few more times for it all to sink in!

[@investlikeapro7977]

Thanks. Yeah, lots of good stuff in there.

[@essamhassan5810]

Brilliant

[@investlikeapro7977]

Thanks

[@hedgedrisk]

Seems like using the ADX is similar to using volume for confirmation

[@investlikeapro7977]

The DI lines and Volume are highly correlated.

[@hedgedrisk]

@@investlikeapro7977 I still don’t understand how to use volume, but like you I rely heavily on divergence for an initial move but I’ve been using the rsi to judge pullbacks vs change of movement. I’d really love an explanation vid on volume for confirmation and when to use

[@700007123]

3:24 So 8-period ADX and 13-period DIs. Do you use the 13-period ATR and DIs for the calculation of the 8-period ADX, or do you calculate the ATR and DIs separetely as 8-period for the 8-period ADX? What about the smoothing period? These settings are important as they affect the values of ADX. With one settings the level 25 is important but for other settings it might be 20 or 30.

[@investlikeapro7977]

The ADX(8) needs to use the DI(13) to calculate correctly. StockCharts and TradingView both allow for settings of 13 for DI and 8 for ADX (smoothing).

[@700007123]

@@investlikeapro7977 Awesome, thank you for the clarification!

[@gogoalakazam2973]

ADX is power.

[@investlikeapro7977]

Yes, powerful tool

[@khalidbenjamin9179]

Hello Joe..what are the best settings to use adx di+ di- on a 5 minute chart on forex ( pulbacks in a trend strategy) thanks..

[@investlikeapro7977]

I would use the same settings 13 for DI and 8 for ADX. 5 min can be used with a 30 min and 1 min chart depending on what you are looking for.

[@khalidbenjamin9179]

@@investlikeapro7977 oke thanks

[@gogoalakazam2973]

ADX is must be include.

[@investlikeapro7977]

Yep. If I had to pick one indicator only, it would be ADX.

[@itm_randy]

notes to self for later: 9:00 - how ADX works and when it doesn’t (high volatility) 18:00 - MTF trade example using long term ADX line (peak and a trough holding above 25) | execution on lower TF (MACD, price action, etc.) 30:00 - ADX divergence and options trade example

[@Jayfoxpox]

Thanks for all of the content regarding ADX! Never seen someone cover this particular indicator so much. Learnt a lot! Maybe you have already covered it in one of your videos, but do you use trendlines on your ADX + DI indicator as a means for an entry/exit signal? I can find some good examples, but I would like to backtest this to see if this is a valid strategy. Perhaps a breakout of the ADX could be confirmation of a trend change/trend continuation after a consolidation period. www.tradingview.com/x/HzUkMH1y/

[@investlikeapro7977]

Yes, I like drawing trend lines on the ADX/DI and compare them to price trend line. I always try to use price as a trigger rather than the indicators. Price will give the earliest signal. Then, use indicator to confirm. I love that you identified the UUUU. Great move out of base. I noticed that early and recommended it to some clients. Nice find!