Wednesday, September 2, 2009

Choppiness Index vs. ADX

I just wanted to mention that in my testing I have found Bill Dreiss's Choppiness Index to be far superior to ADX. ADX is supposed to measure the strength of a trend, but the CI does more by telling you how orderly price is moving using fractal geometry. I just started live trading small positions this month with an automated strategy. Hopefully the volatility will start to pick up a bit as traders come back from vacation.