Hello Steemians!!
Want to learn the analytics of trading and how to use them to make some profit?
I am trying to learn to trade and I will be posting the experience and knowledge here exclusively on Steemit!!
Our First Tool is the ADX -DMS Tool in Bittrex!
Using ADX-DMS Tools in Bittrex
ADX/DMS stands for Average Directional Index and Directional Movement System. It can be used to identify the direction and strength of a trend.
The average directional index (ADX) is an indicator used in technical analysis as an objective value for the strength of a trend. ADX is non-directional, so it quantifies a trend's strength regardless of whether it is up or down. It is usually plotted in a chart window along with two lines known as the DMI (Directional Movement Indicators).
Here is the Bittrex Snapshot for Steps to activate the tools :
1. Goto Studies and choose ADX/DMS
2. Select a period of 14 days . Click create
3.I will be telling how to analyze the chart.
Green graph is Positive DI , +DI - Directional Index. Positive DI means that there is
a positive uptrend/Bullish Trend.
Red Graph is Negative DI , -DI. Negative DI means there is a negative /Bearish trend.
Black graph is the ADX indicator. The numerical value tells us about the momentum
of the +DI or -DI. So , as seen by the 3 bold black lines. The momentum is increasing and if
+DI > -DI then its an entry position.
As you can see, I have drawn the lines for entry and exit positions. When there is a fall in +DI,
It’s the time to leave it.
Please note: This is a 5minutes chart. ADX/DMS value is different for different time charts.
I will also be making more iterations and posting more of these tutorials for more clarity and understanding.
Thank you and Have a nice day!
P.S : Please follow and upvote if you like my post and find it useful!