Finally we have the so called Super ADX, I mean a clone. I could get the time to finalize it after a long time. It is based on the MT4 super ADX indicator. First of all I wish to clarify that it is not the Holy Grail. Of course we should understand that if one had the Holy Grail Indicator we would never share it any body at whatever price. Since he is not able to make enough money with that system from the market he is trying to make money by selling it. The newbie trader should first understand that there are always many people with their eye on his purse. Everyone wants a few bucks from his purse. Some take it legally by selling something and some steal it.
Coming back to the Indicator, Let us see what this does. The indicator first calculates the difference between the moving average of the average price and the moving average of the close. This is taken as a measure of the strength of the trend. The change of directions of this strength measure is a reversal point. However the validity of the reversal point is made when the ADX (Another measure of trend strength) is either above a value of 35 (normally end of a trend) and below a value of 10 (for starting of a Trend). It also looks at reversal of the MACD. Finally it also looks at multiple reversals within the last 15 bars. Different signals are generated for different type of reversal signals. The different signals are as follows.
1. A red bar would indicate that a big move is imminent.
2. A white bar would indicate that it is the end of the big move and hence exit.
3. A yellow bar or a violet bar would indicate a possibility of a reversal of the current trend.
4. A magenta bar would indicate that multiple signals have occurred and possibility of a reversal is very strong.
Also it should be noted that the exit signals is not generated in all cases. Similarly the Big Move indication is also not generated every time. But whenever it happens it will be a good opportunity. Also reversal signals are not generated every time reversal is imminent.
The super ADX also uses a indicator which they call Money line. This line is used as the exit point though I did not find it correct. Normally a Linear weighted Moving average of period 40 should be good enough as a money line.
So try out the indicator and provide your feedback. I only hope that unscrupulous elements don’t take this and commercialize this as they have down with other my other indicators.