Investing & Trading

ADX Breakout Filter Study

By Samantha Baltodano


TL;DR:

The ADX Breakouts Filter is a trading tool used by traders to find good stocks to buy or sell. It's the first step in a larger trading system created by Ken Calhoun and is based on a technical indicator called the Average Directional Index (ADX).


The filter works by looking for stocks that meet certain criteria, such as being priced between $20 and $70 and having moved at least $5 in the past 15 days, and can be adjusted based on the trader's preferences. 


It is often used with a tool called thinkorswim Stock Hacker to help traders quickly scan through large numbers of stocks.


What Is The ADX Breakout Filter Study?

If you're interested in trading stocks, you may have heard of something called the ADX Breakouts Filter indicator. This is a tool that's used by traders to help them find good stocks to buy or sell.


The ADX Breakouts Filter is actually part of a larger trading system created by a guy named Ken Calhoun. It's the first step in the system, and it helps to identify stocks that fit with the overall strategy.


The way the filter works is by looking for stocks that meet certain criteria. For example, it might look for stocks that are priced between $20 and $70, and that have moved at least $5 in the past 15 days. These numbers can be adjusted based on the trader's preferences.


The filter is often used with a tool called thinkorswim Stock Hacker, which helps traders to quickly scan through large numbers of stocks to find ones that meet their criteria.


The ADX Breakouts Filter is based on a technical indicator called the ADX, which stands for Average Directional Index. This indicator helps traders to identify trends in the stock market and to make informed decisions about when to buy or sell.


Overall, the ADX Breakouts Filter is a powerful tool that can help traders to find good stocks to buy or sell. While it may seem complex at first, with a little practice and some customization, it can be a valuable part of any trader's toolkit.


Test The ADX Breakout Filter Study

Great news! 


You can back test Ken Calhoun’s ADX system on historical data for any of your favorite symbols using TradingView. 


This strategy has already been built and all you have to do is log in and take it for a spin. You can access this indicator here.


If you’re new to back testing and to TradingView, don’t worry. I created a step-by-step guide you can follow to begin testing the ADX Breakout Filter Study.


Summary

  • The ADX Breakouts Filter is a tool used by traders to find good stocks to buy or sell.
  • It's part of a larger trading system created by Ken Calhoun and is the first step in the system.
  • The filter works by looking for stocks that meet certain criteria, which can be customized by the trader.
  • It's often used with thinkorswim Stock Hacker to quickly scan through large numbers of stocks.
  • The ADX Breakouts Filter is based on the technical indicator called the ADX, which helps traders to identify trends in the stock market.


ADX Breakout Filter is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.


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