Hi Spark
Here is a good explaination of the ADX. In the examples you can see where DMI+/DMI- crossing over each other can signal Change of trends, where the DMI+(positive) will be overtaking the DMI-(negative) or vise versa, and how the ADX is showing an indication of the Strength of that controlling trend. When the ADX is low and neither DMI+/DMI- is staying in control, as Mar to May in this chart, then it will usually be a period of consolidation. I will see if I can find some clearer examples of stocks or indices to put up later. The link explains it in more detail.
Enjoy the Day Spark! :^)
http://stockcharts.com/education/IndicatorAnalysis/indic_ADX.html
Here is a good explaination of the ADX. In the examples you can see where DMI+/DMI- crossing over each other can signal Change of trends, where the DMI+(positive) will be overtaking the DMI-(negative) or vise versa, and how the ADX is showing an indication of the Strength of that controlling trend. When the ADX is low and neither DMI+/DMI- is staying in control, as Mar to May in this chart, then it will usually be a period of consolidation. I will see if I can find some clearer examples of stocks or indices to put up later. The link explains it in more detail.
Enjoy the Day Spark! :^)
http://stockcharts.com/education/IndicatorAnalysis/indic_ADX.html
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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