Hello, I am trying to work through stocks as a newbie and I would appreciate if someone could help me understand this points on trends a bit more clearly. I am using the TWS from Interactive Brokers. So my question is - I have the setting for ADX/DMI which is the average Direction Index and Directional Movement Index. So under this what should the typical settings be for (the Default shows up as 27) Averaged Bars in DI - 27 Averaged Bars in ADX - 27 Setting for another ADXR Averaged Bars in DI - 27 Averaged Bars in ADX - 27 ADXR Period - 10 Along with this the RSI is set up at 20 So, if I am working with the above trend analysis, what the chart period that should be? Should it be a daily chart or a 3 month candlestick chart? At the same time the SMA average lines 20, 50 and 200 days do not sync up. Any help on this would be really appreciated.
Heres the thing with technicals, they are subjective and relate to your personal trade parameters. Find the stock you like, slap on your technicals and see tweak them until you get the signals which you feel match your trading strategy. There is no "right" settings, its different for every person based upon their risk tolerance and strategy.
