Who agrees about on ADX sine wave and Hilbert Transform

(Last Updated On: October 14, 2020)
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I posted this video below which got some useful comments on ADX sine wave and Hilbert Transform

I always asked myself why the ADX period is mostly 14 ? No answer really clearly satisfy me, I tried may be as a dummy trader to see what it could give if I change it into 10, thinking that if 2 weeks are 14 days but the working days make 10 days… And so far it seems to give better entries, any further clarification on this ? Thanks


ADX measures volatility, which is the difference between -DI and +DI. When the directional index’s difference grows and + or – is above the other, it indicates that new highs or lows are being made within the given period length. When the price goes down, -DI will go up and +DI will go down, and the longer it continues downwards, making new lows as it goes, the difference between +DI and -DI grows and grows. The ADX is the average between these 2 lines, or rather, “the average of DX”. That’s why it looks bizarre to you as it doesn’t do what you thought it would. ADX is a good indicator for distinguishing strong and weak trends from each other; the higher the ADX value is, the stronger the move in one direction is. If price bounces the other way, ADX will start to dip, and if the prices are really choppy/sideways, the ADX values might be low. About Hilbert’s sine wave: it measures sine wave values from the price data. These waves do not correspond the price direction in any way. It’s simply a measurement for sine-wave’s phases and shit. Phases start when sine crosses the zero-line UPWARDS, and it ends when it crosses it upwards again. And please stop using histogram bars on every indicator… Makes my eyes bleed. Better get used to them lines instead, much easier to read as well!

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs