Thursday, June 21, 2012 8:47:58 AM
The adx also tells you who is in charge overall the buyers or sellers. Red on top means the bears are in charge/green means the bulls are in charge. Buying calls when the red line is on top means you are buying in a sellers market and going against the current trend. A trick that many use is seeing the red at the very top. This would represent oversold because the red up on top. Below is one example.
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