Monday, March 11, 2013 12:33:14 PM
Trend TRIN
&id=p44436754710&a=271980762&r=745)
We can get an idea of whether the S&P 500 is in or about to enter a dynamic TREND phase...or if it's just in a long term sideways trading phase. For about the last year, there has been no real trend for the S&P--this is one reason you might experience a lot of volatility, but seemingly no real direction in things. A reading below 10 on the ADX-52 is a sign of no trend, but also, most powerful trends are born in such periods of directionless volatility or periods of complacency.
Words to the wise: as of July 2012, the ADX is well under 10, but don't assume that the next big trend will be very bearish...ADX does not predict from such a low number which way the market will turn. It could easily begin a very strong bullish trend as well.
We can get an idea of whether the S&P 500 is in or about to enter a dynamic TREND phase...or if it's just in a long term sideways trading phase. For about the last year, there has been no real trend for the S&P--this is one reason you might experience a lot of volatility, but seemingly no real direction in things. A reading below 10 on the ADX-52 is a sign of no trend, but also, most powerful trends are born in such periods of directionless volatility or periods of complacency.
Words to the wise: as of July 2012, the ADX is well under 10, but don't assume that the next big trend will be very bearish...ADX does not predict from such a low number which way the market will turn. It could easily begin a very strong bullish trend as well.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
