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Classic Technique | OCT 1999
How The Pros Use Average Directional Index by Barbara Star, Ph.D.
How The Pros Use Average Directional Index Here’s how technicians Charles LeBeau, Paul Rabbitt, and Linda Bradford Raschke integrate the average directional index into their trading plans. How would you like to look over the shoulders of professional traders using one of your favorite indicators? Here’s your chance. I spoke with three well-known traders who put their own money at risk daily. I asked them to show me what they do with the average directional index (ADX), one of the longest-lived and most popular trend indicators around. I asked Charles LeBeau, Paul Rabbitt, and Linda Raschke how they integrate ADX into their own trading analysis and trading tactics. Here, largely in their own words, these traders explain the thinking that guides their decision-making. Hopefully, some of their strategies might make you think about how this indicator can improve your trading.
by Barbara Star, Ph.D.
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