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ADX

AAPL Trend & Volatility Likely Unsustainable - Sell SignalThe ADX indicator measures the strength of a trend, not its direction. The mid part of last week AAPL was in "full bull" mode printing 23 consecutive bullish 30m candles in our paintbar study. We've included a legend on the chart indicating bars colors and the corresponding strength of a trend. The Extreme Turn Sell Signal that our strategy generated on Thursday was confirmed for a short entry at 453 when the color rotated from full bull to bull neutral (lime to gray). Given the strength in AAPL and rich premiums, we chose to express the trade using a Bear Call Credit and even entered an ITM spread which is unusual for our models. Aug 14 250/255 Bear Call 2.25cr Underlying target will be the visible range POC at 437, but will manage exits to 50% of premium received.
NASDAQ:AAPLShort
by TDGonTView
1
Gold Continues To Set New HighsGold price ended July at $1,974/oz which made last month the highest that gold has ever closed on a monthly basis-beating the previous high set back in August of 2011 of $1,823/oz. July also saw price make a new all-time high of $1,984/oz which beat Septemeber 2011's $1,920/oz. So far August 2020 has set a new all-time high of $2,030/oz which was made today with price currenty holding near that level. The current monthly candle is yellow which indicates that there is bullish momentum volatility behind price, or extreme trader optimism. May, June and July were all yellow candles as well which shows that there has been extreme optimism in the gold market for the past four months. The Relative Strength Index(RSI) shows the green RSI line rising above the purple signal line which indicates short-term bullish momentum behind price. Both lines are above the 50 level which is the midpoint of the total RSI range. In general, when the green RSI line is trending above the 50 level it indicates bullish momentum in the intermediate-term while an RSI reading below 50 would indicates bearish momentum in the intermediate-term. Overall, the monthly RSI for gold is bullish since we have the green RSI line trending above the purple signal line, both lines rising, and both lines are above the 50 level. The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line which indicates short-term bullish momentum behind price. Both lines are above the 0 level which indicates that there is bullish momentum in the intermediate-term for price as well. In general, when both the green PPO line and purple signal line are trending above the 0 level it is considere a bullish momentum indication for price, and vice versa when both lines are declining below 0. The Average Directional Index(ADX) shows the green directional line trending above the purple directional line which indicates that there is a short-term bullish trend behind price. The histogram in the background is green and rising which indicates that the short-term bullish trend in price is increasing in strength. In general during an uptrend in price, you want to see the green direcitonal line above the purple direcitonal line and for the histogram to be rising as it is now. Overall, the view on gold price remain bullish with the expectation that gold and gold-related stocks will continue pushing higher this year, as well as silver and silver-related stocks. Current holdings are: GDX, GDXJ, GPL, CDE, HL, KGC, EXK, NGD, MUX, AG and physical silver since I expect silver to continue to outperform gold during this rally.
Editors' picks
FX_IDC:XAUUSDLong
by PrepForProfit
12
Crypto Trading 101: Scalping Trends With DEMAHi hoppers, today we are looking at a scalping strategy that involves scalping trends by combining the DEMA with the ADX. First, let’s break down the Double Exponential Moving Average (DEMA). Double Exponential Moving Average To understand the Double Exponential Moving Average, lets first explore the “Exponential Moving Average”. The Exponential Moving Average (EMA) is one of the most frequently used indicators in the crypto sphere. The EMA is a trend-following indicator that is used to identify the direction of a trend. The EMA reacts quicker than the Simple Moving Average to price changes because the EMA gives greater weight to the latest closing prices. The DEMA reacts faster than the EMA by giving even more weight to recent closing prices. We can use the DEMA on the 15 minutes chart to identify solid entry points. Keep in mind, the DEMA has the same weakness as all trend-following indicators: ranging markets. When the market is ranging, the DEMA will keep opening up new positions. Therefore, it is critical to use another indicator to identify when the market is trending, and when it is not. Now let’s take a look at how to use the ADX to improve the profitability of the DEMA. Average Directional Index (ADX) The ADX is a volatility indicator that measures the strength of a trend. When the ADX is above 25, we can infer that the market is in a strong trend. This can be seen on the graph when the white line crosses above the black line, and the green cloud is active. You can see this better if you click on “Maximize the chart”. We have chosen to run the ADX on the 4-hour chart as the indicator tends to be more reliable on the longer timeframes. For our exit strategy, we have not chosen any indicator. Instead, we have decided to exit based on our usual scalping settings: Take profit 7% Stop-loss 1% Trailing stop loss percentage 1% Arm trailing stop loss 1.5% You can see the positions opened by the strategy better if you click on “Maximize chart”. Have a great trading week ahead, and we will catch you on the next one! —CRYPTOHOPPER—
by cryptohopper
Silver Makes 7-Year High, Gains +38% in July Silver has broken well above the long-term $20/oz resistance level that has capped price since 2013 and is now testing $25/oz which is a level not seen since 2013. Silver opened July at $18.20/oz and is currently at $25.15/oz for a +38% monthly gain going into August. While gold is making new all-time highs per-ounce above previous highs set back in 2011, silver is still well below its 2011 average of $35/oz and the 2011 all-time high of $49.83/oz, which is the level silver should be close to testing now if it had been keepig up with gold price this year. The current monthly price candle for silver is yellow which indicates that silver is experiencing bullish momentum volatility, or extreme trader optimism behind price. The Relative Strength Index(RSI) shows the green RSI line rising above the purple signal line which indicates short-term bullish momentum on a monthly basis. The green RSI line is also above the 50 level which is the midpoint of the total RSI range(0-100). In general, price is considered to have bullish momentum when the RSI is above 50 and bearish momentum when below 50. In general during an uptrend, you want to see both the green RSI line and purple signal line both rising and trending above the 50 level. The purple signal line is just below 50, but it is slower to react to short-term price movement than the green RSI line but it should begin to drift up and above 50 after this months record month for silver price. The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line, and both lines are trending above the 0 level. When the green PPO line is rising above the purple signal line it indictes short-term bullish momentum behind price. When both lines are trending above the 0 level it indicates bullish momentum behind price in the intermediate-term. The Average Directional Index(ADX) shows the green directional movement line above the purple directional movement line which indicates a short-term postive trend hind price. When the green directional line is above the purple directional line it is considered bullish for price trend, while the purple directional line above the green directional line is considered bearish for price trend. The histogram behind the two directional lines represents trend strength. When the histogram is green and rising it indicates increasing strength in an uptrend. When the histogram is purple and rising it indicates increasing downtrend strength. For now the ADX reading is showing a shift to a bull trend in price with the green directional line above the purple, but due to the swiftness of the move in price it has yet to reflect in the histogram which should begin rising soon. Overall, the view on silver remains bullish with the opinion that silver will outperform gold during the current bull market that is taking form. Silver had severely lagged gold this year in price gains until this past week and is now rushing to make up for lost time. Current holdings remain to be: GPL, HL, EXK, AG, KGC, MUX, CDE, NGD, GDXJ, GDX and physical silver.
Editors' picks
FX_IDC:XAGUSDLong
by PrepForProfit
11
Gold Makes New All-Time HighGold price made a new all-time high overnight of $1,945/oz breaking the old record of $1,920/oz set back in 2011. Price is currently holding above $1,930/oz and close to making July a record closing month as well if gold holds above $1,825/oz into August which looks likely. Price has been on a steady rise with bullish momentum since mid-2019 as indicated by the green and yellow candles after price broke above the red $1,400/oz resistance level. Price is currently breaking to new all-time highs on a yellow candle which indicates that there is bullish momentum volatility behind price, or extreme optimism by traders. The Relative Strength Index(RSI) shows the green RSI line rising and trending above the purple signal line which indicates bullish short-term price momentum, with both lines rising and trending above the 50 level which is the midpoint of the total RSI range. An RSI reading above 50 indicates bullish intermediate-term price momentum while a reading below 50 indicates bearish intermediate-term momentum. The RSI currently shows bullish short and intermediate-term momentum for gold price. The Price Percent Oscillator(PPO) shows the green PPO line rising and trending above the purple signal line which indicates bullish short-term price momentum, with both lines rising and trending above the 0 level. A PPO reading above 0 indicates bullish intermediate-term price momentum while a reading below 0 indicates bearish intermediate-term momentum. The PPO currently shows bullish short and intermediate-term momentum for gold price. The Average Directional Index(ADX) show the green directional trend line trending above the purple directional line which indicates that the short-term trend direction for price is bullish. The histogram behind the green and purple directional lines is green and rising which indicates that the strength behind the bullish price trend is increasing. The ADX currently shows a bullish trend behind price. The view this year has been bullish on gold with the expectation that price would make a new all-time high by year end, and now that price has officially set a new all-time high the view remains bullish going forward. Current gold and silver stock/ETF holdings are: GPL, HL, EXK, AG, KGC, MUX, CDE, NGD, GDXJ, GDX.
FX_IDC:XAUUSDLong
by PrepForProfit
Crypto Trading 101: Trading Bitcoin With The DMIThe Directional Movement Index (DMI) is one of the few indicators that can be used on its own in trading, especially when it comes to swing trading. The DMI can work as a standalone indicator because it is made up of multiple indicators, specifically: the +DI, -DI, and the ADX indicator. Let’s now dive into how these components fit together! +DI & -DI The +DI and -DI are two lines that measure the strength of positive and negative trends. +DI indicates a positive trend, and in our case, it is marked by the color blue on the chart. -DI represents a negative trend, and it is orange in our graph. When the +DI is above the -DI, the bullish pressure is larger than the bearish one. And if the negative line is above, the bears are dominating the market. Therefore, a bullish signal is given when the +DI crosses the -DI upwards, and a bearish signal is given when the +DI crosses the -DI downwards. ADX You may have noticed the positive (+DI) and negative (-DI) lines have crossed many times on the chart, but we have identified only a few signals (indicated by the green circles on the graph). This is because the signals from the +DI & -DI lines are filtered out by the ADX. The ADX identifies the strength of a trend and the volatility in the market. The white line on the bottom graph represents the ADX, while the horizontal black line has an ADX value of 25. Therefore each time the ADX is above the black line, it indicates a strong market trend and volatility. Following June 3, 2020, the ADX filtered out all of the +DI and -DI signals until the 20th of July. Not trading was preferable as the market has been ranging and was not the best time to trade due to the low volatility. We have used the following settings when creating this analysis. Stop Loss: 5% Trailing Stop loss percentage 2% and arming at 7% —CRYPTOHOPPER—
by cryptohopper
Crypto Trading 101: Making A Profit With The ADXWhat Is The Average Directional Movement Index (ADX)? The ADX is an indicator used to identify the strength of a trend. The higher the value of the ADX, the stronger the trend. Today, we will explore how you can incorporate the ADX in your trading! How to use the ADX Because the ADX determines the strength of a trend, it works best when paired up with a trend-following indicator. Examples of trend-following indicators include the DMI, SMA, EMA, DEMA, Hull Moving Average, MESA, Parabolic SAR, KAMA, T3, TMA, WMA, TEMA, MACD, etc. The ADX often comes together with the DMI (Directional Movement Index), as its the case on Tradingview. We have hidden +DI and -DI in our graph, and therefore we only view the ADX. Today we have chosen to combine the ADX with the MESA to create an exceptional strategy. For this example, we have chosen a threshold of 25 for the ADX. Thus, for MESA signals to be valid, the ADX will need to have a value greater than 25. To make the value of the ADX easier to identify, we have added a horizontal line to represent the threshold visually. Therefore, as seen in the graph, each time the pink line is above the black line, the ADX indicates a strong trend. The MESA indicates a bullish momentum when the cloud turns green. This strategy will only open a position when the MESA is green while the ADX has surpassed its threshold. To exit positions opened by this strategy, we have used the following settings: Take Profit 15% Trailing stop loss percentage 2%, arming trailing stop loss 5% Stop-loss 4% You can add these settings to your hopper by going into the config/baseconfig/sell settings.
Long
by cryptohopper
Swing Trading Bitcoin With The Aroon and ADXSwing Trading Bitcoin With The Aroon and ADX The market has continued its ranging period and is now closing in on the support level around $8,500-$9,000. Although the market has been ranging over the past two months, you can still make a profit by trading with the Aroon and ADX! Let’s start by taking a closer look at the Aroon indicator! Aroon Aroon is considered to be both a momentum and a trend-following indicator. Aroon is represented by two lines, Aroon up (the orange line) and Aroon down (the blue line), and fluctuates between 0% and 100%. Aroon measures the frequency of new highs during uptrends. If the price is continuously rising and making new highs, Aroon up will be 100 and Aroon down 0 and vice versa. However, when the price is not making new highs, it means that the uptrend is fading out, and we can have a correction or trend reversal. The indicator generates buy and sell signals through crossovers. When “Aroon up” crosses “Aroon down” upwards, it means that a positive trend has initiated, and it signals a buy (marked with a green circle on our graph). On the other hand, when “Aroon down” crosses “Aroon up” upwards, it will send a sell signal. We have only used the buy signals from the indicator in this example. The downside of the Aroon is that it may give out signals during a range that may not be as profitable as during a trend. Therefore we have added the ADX to act as a filter! ADX The ADX or average directional index is a volatility indicator that measures the strength of the trend. The higher the value of the ADX, the stronger the trend. We are going to filter out signals given when there is no clear direction in the market. Therefore, all signals provided by the Aroon must coincide with the ADX having a value greater than 25. To filter out signals even further, you may also want to add a MESA or Parabolic SAR on the daily chart to make sure you are only trading when the broader trend is in your favor. To exit positions opened by this strategy, we have used the following settings: Trailing stop loss percentage 2%, arming trailing stop loss 4% Stop-loss 3% You can add these settings to your hopper by going into the config/baseconfig/sell settings.
Long
by cryptohopper
1
SPY Island Reversal SetupLast week saw the largest decline in markets since the rally of the March low and in doing so created an Island Reversal Pattern which is a bearish type of chart pattern. Island Reversals form when price creates a gap up during an uptrend, holds above the gap level for a few days, and then reverses back to the downside while creating another gap on the move down thus creating an “island” consisting of a few price candles that are suspended above the bulk of recent trend. This Island Reversal occurred during a trend of yellow price candles which indicates that the market was experiencing bullish momentum volatility which can either be a signal of continuation or sign of a reversal. In general, after a period of bullish momentum volatility the trend will continue upward as long as price remains above the low of the first yellow candle(dashed yellow line) while a reversal tends to occur if price breaches below the first yellow candle. Price held just above the dashed yellow line on Thursday’s decline as well as on Friday’s attempted rally. Going into the new week of trading there are two things we want to watch for as a signal of what to expect next: 1) Should price make a move below the dashed yellow line it will likely be an indication that the two-month rally off of the March low has ended and a new short-term bear trend is forming. 2) Should price hold above the dashed yellow line and move higher while filling the gap it will likely indicate that the recent uptrend is still in play while keeping momentum in favor of the bulls. The Relative Strength Index(RSI) shows the green RSI has crossed below the purple signal line which indicates that the short-term momentum in price has shifted bearish. The green RSI is holding above the 50 level which is the midpoint of the total RSI range. In general, an RSI reading above the 50 level indicates overall bullish momentum behind price while a reading below 50 indicates overall bearish momentum behind price. Should the green RSI line cross below the 50 level it could be an indication that overall momentum is turning bearish, while a bounce up and off of the 50 level would indicate that overall momentum is remaining bullish. The Price Percent Oscillator(PPO) shows the green PPO in a fresh cross below the purple signal line which indicates short-term bearish momentum in price. The PPO and signal line both remain above the 0 level though which indicates that overall price momentum remains bullish. In general, a PPO reading above 0 indicates intermediate-term bullish momentum while a reading below 0 indicates intermediate-term bearish momentum. The Average Directional Movement Indicator(ADX) shows the green directional line(+DI) has crossed below the purple directional line(-DI) which indicates that the short-term trend in price is bearish. When the green +DI line is trending above the purple -DI line it indicates a bullish price trend, while the purple -DI line trending above the green +DI line indicates a bearish price trend. The histogram in the background shows trend strength and since we have the purple line above the green line it is showing us the strength of the bearish trend. When the histogram is rising it indicates a strong trend and when the histogram is declining it represents a weak trend, and for now the histogram is declining which indcicate that the current bearish trend is weak. The Volume indicator shows a two-day spike in volume as price gapped down after a period of relatively low volume in April and May. The volume on Thursday and Friday was at its highest levels since the March selloff which indicates that more traders were active on the late-week selloff. Overall the dominant trend in price remains bullish, but could turn bearish based on the island reversal setup as well as weakening lower trend and momentum indicators. Watch for support above the dashed yellow line as a signal that price may move higher; watch for a move below the dashed yellow line as a signal that the uptrend has ended. Current view is neutral, but I opened a short-trade on Friday due to the possibility that the island reversal pattern was a sign that the two-month rally has lost steam and is at risk of reversing to the downside.
AMEX:SPY
by PrepForProfit
1
Historical compare S&P 500 vs. VIX vs. ADX - June 2009Was trying to find some direction for the market in the coming weeks. I took a look through history to see if I could find a time when the SPX, VIX (volatility), and ADX (trend strength) all had similar values. The best match I could find was the beginning of June 2009. You will have to zoom in on the time frames to get a better view of the data. I know, I know, this time is different. Anyways, take it for what it's worth (free analysis from some random guy on the internet :) During the first week of June 2009, S&P had a breakout of 9 days with several new highs without pullback. During that time the VIX held relatively flat and the ADX sunk to a low of 14.38. During those 9 days I can only imagine how everyone must have thought the bear market was over. The irrational exuberance much have been at an all time high. However, the S&P then went on a 19 trading day decline (the rest of June) erasing much of all the gains made over the previous month. On the upside, after the market shook that off it rallied for something like 2 months without a meaningful pullback. There are clearly parallels that can be drawn to today. The fact it is almost June I assume is just a coincidence, I doubt it is an omen ;) Today we have had about 5 days of new highs with out a significant pull back. The VIX has been flat for the last several days of new highs and the ADX has reached a low of 15.4. Obviously, the Fed was not as aggressive back in 2009 and things are different in many ways. Maybe we will rally for 2 months without a pullback, but I doubt it. Pullbacks are a natural part of the market cycle. The question is not if but when and how much. We could easily climb up for a few more weeks before we see a pullback to a level that we see today. Hopefully it will become clearer soon. Be ready to pounce one way or the other. Hoped this helped and happy trading.
AMEX:SPYLong
by Dr_Roboto
8
Short GBPJPY 4HFX:GBPJPY is in a long term downtrend and therefore we should look to enter only entries to the downside. The black lines on the chart represent Fib Retracement level on the Daily Chart. We will now continue to the smaller timeframe to find an accurate entry point. A nice downward parallel channel further indicates downward movement and we will set our TP target on the fib retracement line. The ADX also have downward movement that indicates bearish action. Risk:Reward - 2.00 TP :129.700 SL : 131.600
Short
by OT_Forex