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Chapter 20, Part III. Trading Fakeouts. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Nov 3, 2011.

  1. Administrator

    Administrator Just Administrator :-)

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    Please use this thread for questions, answers, and comments on this lesson.
     
  2. pringy

    pringy Private

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    Hi Sive,
    Seasons greetings!

    Just curious, you have not mentioned the use of any indicators to judge a breakout. E.g. ATR? Apart from using divergence.

    Also, in terms of interpreting a good strong trend, what are your views of ATR vs ADX? Both seems to give quite different signals.

    cheers
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Pringy,
    there will be a chapter, dedicated to volatility and applying such indicators as ATR, Historical Volatility and some others for estimation of possible reversal.
    Application of ATR and MACD Hist is here:
    http://www.forexpeacearmy.com/forex-forum/chapter-20/18074-chapter-20-part-ii-trading-breakouts.html

    Concerning ATR and ADX, personally I do not use them. I prefer to use MACD and 3x3 DMA as thrust identification. While trend develops I keep and eye on MACD hist. to monitor overall momentum.
    Besides, ATR and ADX work absolutely different, just take a look at their math. ATR has more common with historical volatility, although it is much simpler.
     
  4. pringy

    pringy Private

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    Thanks Sive - and I hope you did manage to have a bit of a christmas break! cheers
     
  5. Hamza Samiullah

    Hamza Samiullah Corporal

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    Long but simple lesson...
     

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