Filtering Breakouts by Adam White
ARTICLE SYNOPSIS ...Filtering Breakouts
by Adam White
Which is more effective as a signal filter, the average directional movement index (A DX), the indicator
developed by J. Welles Wilder to measure market trend intensity, or the unsmoothed version, the
directional index (DX)? Adam White of the Technical Traders Bulletin measures the performance of a
breakout trading system using the ADX or the DX as signal filters.
In hindsight, few things look better on a chart than a successful breakout -- a profitable move to a
better price signaled by the crossing of an established support or resistance level. But for ever...