Replies to post #5862 on Abet Chichi2 (Chichi2)

[xe2dy]

clairafication


Notes on ADX: *The best time to be long is when both green directional and black ADX are above the red directional and ADX rises.
*The best time to be short is when both red directional and black ADX are above the green directional and ADX rises.
*When ADX points down, it is better not to use a trend following method.
*When ADX falls below both directional lines, start getting ready, because major trends emerge from such lulls.
*The single best signal comes after ADX falls below both directional lines. The longer it stays there, the stronger the base for the next move.
*If ADX rises from 8 to 12 while both lines are above 12 and the green directional line is on top, it indications that a new uptrend is beginning. If ADX rise from
9 to 13 while both directional lines are above 13 and red is on top, it shows a new downtrend is starting.
*When ADX rallies above both directional lines, it identifies an overheated market. When ADX turns down from above both directional lines, it shows that a
major trend has stumbled. It is a good time to take profits.