RE wilder's adx - many of the stocks showing up in my long scans show the same adx pattern. adx line is > +di and has been there for some time while the stock price has been rising. isn't this condition generally considered "ripe for a correction"? hank
I hear ya Hank, I'm seeing the same thing and its making me a little nervous. Yes it is usually one of the indicators along with many others which are showing continued overbought conditions ripe for a correction / pullback. Last one was June/July 2006, so I feel the pressure building, the more pressure locked up in "irrational exuberance" the bigger and faster the correction.
But for the most part the trend is still up and trying to call the top is always difficult, so I will stick with the trend until I really see danger or reversal. Of course I often get out to soon or hold on to long. But I do like to take a little money off the table when things just start to look too risky on the long side.
Happy investing / trading
Quasi
I don't work for Stockcharts, I'm just another user always trying to learn more and willing to share what I've already learned.
Stockcharts.com Support Forum
