RE: Crypto Academy / Season 3 / Week 7- Homework Post for [@kouba01] | Trading Crypto With Average Directional Index (ADX) Indicator
Hello @captain36,
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 4.5/10 rating, according to the following scale:
| Originality | Compliance with topic | Consistency of method | Quality of analysis | Clarity of structure & language |
|---|---|---|---|---|
My review :
An article with under average content due to the absence of analysis for several aspects of the topic, and here are the details.
A simplified 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.
Determining the best settings mainly depends on the trading strategy that the trader is willing to use.
You did not well explain how it is possible to extract the false signals based on ADX indicator.
The rest of the questions did not go into depth analysis.
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01