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| SEP 1997
Traders' Tips
TRADESTATION Here are two indicators to assist readers in identifying some of the classic chart patterns, as discussed in Daniel Chesler’s “Identifying significant chart formations” elsewhere in this issue. Ideally, you will use one or both of the indicators in conjunction with other analytical techniques, such as trendlines, to identify trading opportunities on your charts. The first indicator, the ADX/MovAvg Combo, is a relatively simple indicator based on the average directional movement indicator (ADX) and moving average calculation. This indicator plots a 50-bar moving average and triggers both visual and audio alerts when a conspicuous decrease occurs in the ADX below a specified level, which in this case is 15. The indicator code to be entered in the TradeStation Power Editor follows. Suggestions for the format settings for this indicator are given after the code...
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