Replies to post #579 on jrod

[jrod]

ADX / Info - and - BKMP / Chart

Check this link for a official description of the ADX:
http://stockcharts.com/education/IndicatorAnalysis/indic_ADX.html

My short version is:

The green line (+di) represents buyers and their strength/weakness,

The red line (-di) represents sellers and their strength/weakness,

Some use the +di/-di as an entry/exit indicator, buying when green crosses above red - and - selling when it crosses below, with consideration taken for the strength(trend) of the ADX.

The ADX line represents strength of the current direction or "trend".

Readings below 20 are weakness, or represent a weak trend.

Readings above 40 are strength, or represent a strong trend.

When the ADX line crosses above 20 it can signal increasing strength into the current trend.

When the ADX line crosses below 40 it can signal a loss of strength for the current trend.

Some may use this as an entry/exit indicator as well - with consideration taken to other indicators.

In the case of BKMP, It looks as if the adx is attempting to cross above 20 possibly signaling a coming trend.//
Regarding the +di/-di, there is very little buying strength (green +di) right now but the selling strength(red -di) also appears to be decreasing.

I would watch the ADX for a cross above 20 as well as a crossover of the +di (green line) and the -di (red line). (I do not trade by the ADX but I do use it to help make decisions.)