XTL alternatives

[kronie]

Has anyone noticed a similarity between the XTL indicator in how it color codes the strength and mood of the market / trend and any other study? (presumably non-Advanced Get)

I noticed that the formulas / Price Bars / RSI study provides a similar funtion, although it does not have the same clarity, intensity, functionality and purpose. It is however, the closest combination of interpretive studies I have ever seen combined.

[soylent]

I've found XTL generally gives a 'buy' signal 1-2 bars ahead of ADX (directional movement).

Presumably this would be to allow the concept of the 'breakout bar' followed by the 'buy' bar?

I'm sure there are other methods used in calculating XTL but it is similar looking.

[kronie]

Soylent - thanks. What do you mean. I didn't know that there was a similarity relationship or presumed relationship between ADX and the XTL.

Personally I find the XTL awesome in its own right, however, should I not stay with the AdvGet studies, I wanted to know what alternatives that might be available.

My side by side results were these using the EFS-RSI PriceBars (try it)

they color the up and down, not the neutral with either blue or red accordingly and they override any other price based study on the chart.

they work best when overlayed over the actual symbol price display, not as a seperate study below or above the price display

they also are very sensitive to price movement and include their modified low-bar / high-bar study, similar to the basic stochastic studies

they are sensitive enough to show price accumulation to signal trades entry or trades shorting opportunities

they are sensitive enough to reveal actual movement irrespective of volume studies to support huge traders. since most traders are 1,000 lot traders or less, this will work perfectly for them

I would like to open this discussion up even further.

How do you use the ADX studies?, and what do they signal or indicate for you?

[soylent]

>> Soylent - thanks. What do you mean. I didn't know that there was a similarity relationship or presumed relationship between ADX and the XTL

I don't think there is -- I was just comparing it to other methods.

I looked @ the price bars RSI. Interesting: Buy over 70, short under 30. This might actually work well w/ ADX as an addition. I don't think I'd trade this, though... Did it backtest well?

Anyhow, ADX and RSI are both studies by Welles Wilder. (Get his book, it's worth it / a classic) New Concepts in Technical Trading Systems. (Well, it was new in the '70's...) So many indicators are based on it, you should know what the original work was.

Anyhow, ADX measures trend. If the ADX is turned UP, your trend is strengthening. Down, it's losing trend. The best signal is when ADX starts @ < 15 and turns up. I use it all the time to measure cycles. It would take a book / a zillion pictures on how to use it to show the best way... Maybe next time I'm trying not to sell-out of a position, I'll write about it. (Wilders book won't show you the best uses for ADX but if you play w/ it (ADX) enough, you will uncover them).

Then again, I also like Wilders DELTA from the concept of cycles. So, you may not want to listen to me...

Good luck w/ it,

-c

[soylent]

OK, here's an example of ADX...

This is just one example of how I use it. Again, back to WILDER & Delta -- I use ADX to look for a cycle. QQQ seems to cycle every 4 months (inline w/ Wilders DELTA )... (Note: DELTA is a lot more than that but, as AGET takes the 'best' of elliott waves, I take the best concepts of DELTA and toss the rest because it's too random).

We completed a cycle from mid-December through mid-January. The next cycle comes near April.

Now, I never know if the cycle will be UP or down until it's upon us. But, I can take hints from looking @ other technical patterns.

You can also use ADX w/ other patterns (head and shoulders, divergence, etc...).

I've never seen a good book / examples on ADX but it's a great tool and way overlooked.

-c

[soylent]

Conservative ADX w/ SPY

OK, here's an example using ADX w/ SPY (ES / S&P 500)...

This is a rather conservative approach. It mostly waits until a proper base has been completed (low ADX) and shows a confirmed trend (ADX > 25).

There are a few things to look @, like divergence of +DI/-DI but, overall, this works very well.

You'll get 3-4 triggers a year off this -- I call it 'Screaming Mouth' because ADX looks like a tongue splitting the +DI/-DI.

Interestingly, SPY seems to be following a slightly offset cycle from QQQ. We could get a rally (or, decline) of SPX very soon...

[soylent]

Note on that last post (spy):

- Typically, the XTL buy point is earlier than the ADX buy point. I was suprised to see how late the XTL buy came.

- XTL will generate far more trading opportunities than the conservative ADX approach...

Just wanted to clarify that.