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Re: Justin post# 8994

Thursday, 02/11/2010 2:14:28 PM

Thursday, February 11, 2010 2:14:28 PM

Post# of 14712
YES, exactly.....DMI: is the directional movement index & ADX: is the avg. directional index.....you want the green line, which is the positive directional indicator, buying pressure, to cross above the red line, which is the negative directional indicator or selling pressure, and cross above the black line, which is the avg. of the two...........if you look at a 3min. or a 15 min. chart you can get a realtime look at the buying and selling pressure.........simply put, if the green line is ABOVE the black and the red line it's a buy.......if the red line is above the green and black it's a sell...........now, if you see a dramatic spike in one direction, like the green line being pegged to top, that would be a sell signal.....and inversly if the red line is spiked to the top that would be a flex point and a buy signal............a dramatic spike is always a FLEXPOINT and signals a change in direction.........look at today's chart at 10:45.....notice the green lined had spiked, was pegged to the top and was at the high of the day......now look at the red line, notice how it was spiked to the bottom and at lowest point of day at the same time the price is at the highest........this a FLEXPOINT and signals a change in direction........like clockwork the price dropped at this spike and the selling pressure increased......traders use these flexpoints as enter and exit points......you can use them for both day and swing trading........i like to start w/ a 3min., then 15min, then 60min & finally a daily chart to make an analysis.........this gives me a clear picture of trading levels and enter end exit points............remember this is a very calculated move by the market makers.......it may seem like chaos at times, but the reality is the MM'S KNOW RIGHT WHERE THEY'RE GOING$$$..........using T/A will help you feel more confident in your moves and will be a light in times of darkness......if you have any questions, please don't hesitate to ask, I'll answer them to the best of my abilities...........

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