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| Alias Born | 10/16/2003 |
Friday, October 19, 2007 11:03:36 PM
a BEAUTY indeed
This is what I saw when I finally charted it today
Last few weeks the ADX has been in a trendless environment at 20. This often leads to an environment where the price is basically drifting sideways. A trader will then know you must range trade using bids and asks at the bottoms and tops of the range, i.e. scalp scalp scalp. Never chase and just wait for the price to come to you.
But you also have to be careful because when ADX moves down into these low environments, the breakouts from those ranges are sudden and violent and you really don't want to be caught on the wrong side. Also be aware that the longer the ADX remains low the more powerful the breakout from the coil. And we got a break out for sure.
When the ADX is high (over 30) and trending one knows to establish a position ASAP. Trends have a tendency to continue so you can wait forever for a pullback and never get it, especially when the price is coming out of low ADX environment and going parabolic. And guess what?? The ADX is now at 28 and trending higher parabolically in a full blown strengthening trend.
Now, for last couple of days. On Wednesday the +DI indicator crossed over the ADX, That was the final indication I should have needed to go long. Too bad, I didn’t look at the chart until today.
This is what I saw when I finally charted it today
Last few weeks the ADX has been in a trendless environment at 20. This often leads to an environment where the price is basically drifting sideways. A trader will then know you must range trade using bids and asks at the bottoms and tops of the range, i.e. scalp scalp scalp. Never chase and just wait for the price to come to you.
But you also have to be careful because when ADX moves down into these low environments, the breakouts from those ranges are sudden and violent and you really don't want to be caught on the wrong side. Also be aware that the longer the ADX remains low the more powerful the breakout from the coil. And we got a break out for sure.
When the ADX is high (over 30) and trending one knows to establish a position ASAP. Trends have a tendency to continue so you can wait forever for a pullback and never get it, especially when the price is coming out of low ADX environment and going parabolic. And guess what?? The ADX is now at 28 and trending higher parabolically in a full blown strengthening trend.
Now, for last couple of days. On Wednesday the +DI indicator crossed over the ADX, That was the final indication I should have needed to go long. Too bad, I didn’t look at the chart until today.
"You can't be a real country unless you have a beer and an airline - it helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer". F Zappa
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