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RE: Crypto Academy / Season 3 / Week 7 - Homework Post for [@kouba]. Trading Crypto With Average Directional Index (ADX) Indicator

in SteemitCryptoAcademy4 years ago

Hello @allbert,
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 8/10 rating, according to the following scale:

OriginalityCompliance with topicConsistency of methodQuality of analysisClarity of structure & language
(1.5/2)
(1.5/2)
(1.5/2)
(1.5/2)
(2/2)

My review :

An article with good content in which you answered all the questions effectively and with a clear methodology and certain points were taken.

  • A simplified and understandable explanation of the indicator and its use.

Naturally, this is only one value of several that must then be applied in the ADX Exponential Moving Average formula.

  • Or, 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.

On the other hand, a 30 setting is perfect for scalping as it is less sensitive, smoothed, and will show more accurate not volatile values.

  • Determining the best settings mainly depends on the trading strategy that the trader is willing to use. In the short term, it is advisable to reduce the number of periods, or in the long term, we can increase the value of the period.

Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01

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Thanks for the feedback mate!