For a good explanation of ADX, I'd recommend Alexander Elder's book, "Trading For A Living". It has a very good description of the make-up of ADX and a system for trading it. Besides, if you're trading, you should have this book anyway, it's invaluable!

(Hope you get this reply to your post, I'm a newbie to Bullcharts, currently enjoying my 14day trial.)

Got myself a copy. BRILLIANT Explanation!!

Thankyou Seahorse

Go to your local newsagency and purchase a copy of.......

Issue4 CHARTING "PowerStocks". From the publishers of Shares Magazine.

In this magazine Colin Nicholson describes how to use a host of indicators, including the ADX.

Cost is $9.95...cheap!!!!

Man, this ADX.

I've always been interested in, but it's always so complex.

If anyone can direct me to a very concise discription and some examples, I'd be much appreciative.

Ric,
You are able to modify the default plots that appear. Wheninserting Directional Movement all columns - click on Next, then selectthe Styles tab.  Tick the various plots that you wish to display.

You could try creating a new Indicator using the Builder.  Hereis a basic starting point of your idea.  Time periods and signalscan be added to the Bullscript as well.

[name=+DI; color=Green]
pdi;
[name=-DI; color=Blue]
mdi;
[name=ADX; color=Red]
adx;

This is one of my most used and valuable trading tools.

I see where we have available a group of "Directional Movement" Indicators - however, I would like to see a more conventional indicator where we have the basic 3 lines available in the one set up.

1. The ADX line which measures the strength of the trend - rising, indicating the strength of the trend is increasing ( more directional) while a falling line shows the trend is weakening ( less directional)

2. The plus D1 - showing positive upward directional movement.

3. The minus D1 - showing negative downward directional movement.

TRADING

To set up we look for the plus D1 to cross over as a precondition and then to trade it when the ADX line crosses up and over the ADX level - here we should be able to set levels between "0" and "50" with an ADX level line at 25 ( to be variable). Whilst it is common to use time periods of 13 or 14 - this feature should also be variable

A weekly system should also be available - using compressed data.As usual line colours to be available to assist in easier interpretation. If it is possible to show a suitable "buy" signal when above trading requirements are met - it could then become a most valuable scan tool.

I did look at the "combination" Directional Movement Indicator - but found it very difficult to interpret.