RE: Crypto Academy / Season 3 / Week 7 - Homework Post for @kouba01 | Trading Crypto with Average Directional Index (ADX) Indicator submitted by @jasminemary
Hello @jasminemary,
Thank you for participating in the 7th Week Crypto Course in its third season and for your efforts to complete the suggested tasks, you deserve a 5.5/10 rating, according to the following scale:
Originality | Compliance with topic | Consistency of method | Quality of analysis | Clarity of structure & language |
---|---|---|---|---|
My review :
An average work in which the topic was discussed in all its aspects through answers of varying accuracy, some of which lack depth in the analysis, which loses the work's critical dimension in some paragraphs.
A simplified and understandable explanation of the indicator and its use.
The final operation is ADX = Sum of n [((DI +) - (DI-)) / ((DI +) + (DI-))] / n, So to get the correct ADX result, you need to calculate DX values for at least n periods then smooth the results.
Higher periods like 8 to 30 period are good for great output, but 14 is the best settings for AADX, DI+ and DI- indicator and that is why it is set at default period.
Determining the best settings mainly depends on the trading strategy that the trader is willing to use.
A superficial explanation of two methods of trading with ADX indicator, as you confined to stating generalities without going into more details.
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01