Avoid Sideways Markets
Author: lspinv
Creation Date: 8/18/2010 8:26 AM
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lspinv

#1
I would like to add to my strategies a Rule that would prevent Buys during sideways markets. Is there a consensus regarding which indicator(s) would best accomplish this? If it makes a difference, I mostly trade SPY. Thanks.
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dansmo

#2
I often use the ADX for this purpose.
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lspinv

#3
Do you use the standard ADX > 25 equals a Trend (in either direction), or do you Optimize the ADX value for each individual symbol?
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dansmo

#4
Normally, I do not optimize. Yes, something between 20 and 25.
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