Abet Chichi2

[xe2dy]

My trading notes on ADX,


*The best time to be long is when both green and black ADX are above red and ADX rises.

*The best time to be short is when both red and black ADX are above green and ADX rises.

*When ADX points down, it is better not to use a trend following method.

*When ADX falls below both directional lines, start getting ready, because major trends emerge from such lulls.

*The single best signal comes after ADX falls below both directional lines. The longer it stays there, the stronger the base for the next move.

*If ADX rises from 8 to 12 while both lines are above 12 and the green line is on top, it indications that a new uptrend is beginning. If ADX rise from 9 to 13 while both lines are above 13 and red is on top, it shows a new downtrend is starting.

*When ADX rallies above both directional lines, it identifies an overheated market. When ADX turns down from above both directional lines, it shows that a major trend has stumbled. It is a good time to take profits.

Look at a few stocks in both short and long term time frames an you will see that Elder is right on. I'll trade with Elder from this point on.

Merry Christmas and a happy New Year to all. Ed