ADXRising / ADXFalling signals have incorrect opposite block

Just look in the code for ADXRising.java and ADXFalling.java, and you'll see that the opposite block is actually not the opposite.
Attachments
No attachments
  • Votes +1
  • Project StrategyQuant X
  • Type Bug
  • Status Refused
  • Priority Normal

History

RH
#1

rhartstein

27.01.2021 07:47

Task created

IH
#2

clonex / Ivan Hudec

27.01.2021 11:30
Yes and that is correct. Read more info about ADX. 
RH
#3

rhartstein

27.01.2021 19:06
The ADX measures the strength of the trend. So why would the opposite of a trend getting stronger be a trend that's getting stronger? Or conversely, a trend that's getting weaker be a trend that's getting weaker? 


h
#4

hankeys

27.01.2021 21:22
ADX has no opposite - you want to BUY and SELL on the same situations
RH
#5

rhartstein

28.01.2021 07:05
hankeys - Ok, I'll take your word for it.  Would your same logic apply to ATR rising/falling? AvgVolume rising/falling?  Momentum rising/falling? I noticed these signals are used as their own opposites as well.
g
#6

geektrader

28.01.2021 07:39
Voted for this task.
g
#7

geektrader

28.01.2021 07:44
Yes, and that´s correct (I reported this a while back it was wrongly implemented, it was the way you suggested it back then, but that´s not an error!). ADX, as well as Momentum and ATR just measure the strength of a trend / size of a range. You can´t make useful buy / sell decisions on such a indicator, at least not opposite ones. For example: if ADX rises, it means that the trend is getting stronger, but ADX does not indicate the actual direction of the trend! It rises nevertheless if the market is rising OR falling. So saying "Buy when ADX rises" and "Sell when ADX falls", makes no sense, since it has no bias for any market direction and hence such an opposite signal would be a wrong logic. ADX is used as a confirmation indicator only, combined with other ones, and that´s how SQX generates strategies that make use of it, which is perfectly correct. The same goes for ATR, it just measure the volatility of the market, nothing more, it increases when the market falls and when it raises, it is not intended to make a buy / sell decision, it´s an supporting indicator only as well, anything else makes no sense, I think you´ll agree. Same for Momentum. So everything is correctly implemented in SQX in these regards.
h
#8

hankeys

28.01.2021 08:45
superb clarification from geektrader - ADX, ATR and some other indicators are non directional
RH
#9

rhartstein

29.01.2021 09:36
Thank you, geektrader. Yes, as I started using it for my purposes, I realized that there was no algorithm that made sense with reversing the ADX. I assume the same is true for the others referenced.
MF
#10

Mark Fric

01.02.2021 10:32

Status changed from New to Refused

clarified in comments, they are not directional

Votes: +1

Drop files to upload

or

choose files

Max size: 5MB

Not allowed: exe, msi, application, reg, php, js, htaccess, htpasswd, gitignore

...
Wait please