Hi Spark
The ADX can be an indication of the trend, again it depends on the timeframe you are looking at. What you want to see for an uptrend is the DMI+ above the DMI-/ADX and both the DMI+ and ADX rising. The DMI+ is showing a controlling positive trend and the ADX is showing the Strength of that trend, so the higher the ADX usually the stronger the trend. Here you can see the differences between a 1 year and 3 month chart for LMT and the changes in the DMI/ADX readings whether long term or short term. At the http://indexpulse.com/ website you can see examples of the DMI/ADX reading we use on the intraday/2 day chart as compared to the week/5 day chart reading. It can be a useful tool both long term or short term in looking for trend strength or potential low or high signals. I am a bit tired but would be glad to help you out with a better explanation or examples tomorrow or another day.
Enjoy the Evening Spark! :^)
The ADX can be an indication of the trend, again it depends on the timeframe you are looking at. What you want to see for an uptrend is the DMI+ above the DMI-/ADX and both the DMI+ and ADX rising. The DMI+ is showing a controlling positive trend and the ADX is showing the Strength of that trend, so the higher the ADX usually the stronger the trend. Here you can see the differences between a 1 year and 3 month chart for LMT and the changes in the DMI/ADX readings whether long term or short term. At the http://indexpulse.com/ website you can see examples of the DMI/ADX reading we use on the intraday/2 day chart as compared to the week/5 day chart reading. It can be a useful tool both long term or short term in looking for trend strength or potential low or high signals. I am a bit tired but would be glad to help you out with a better explanation or examples tomorrow or another day.
Enjoy the Evening Spark! :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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