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ADX

Identify Exploding Momentum QuicklyHi fellow traders, I have published a new script to assist you in trading. As day and short term traders, we need strong movement, hence, to save our time and allow us to trade only when we expect a lot of movement, I have built this script. Simple Rule : Trade when it enters green zone. That's it. Avoid trading when in red zone and preferably, blue zone too. You can find the script and further explanation when you click on the picture below. Also, you can find it in related ideas mentioned. You can use this by 2 ways : 1. Copy Paste the code on the script page in 'Pine Editor' and select 'Add to Chart'. 2. Select Indicator on your chart, and search for ADX Color Easy. Note : On the main chart of the EURUSD in this idea, I have marked the time when ADX entered the Green Zone, with vertical blue lines. Entry and Exit strategy is according to you ( you can combine this with various other strategies ), the objective of this is to instantly identify trend strength without any effort. P.S. It works best on 1H tf for me. Thanks. Glad to help.
by dravya
Interesting ADX pattern to watch forDuring the past several weeks, I've noticed something evolve in crude oil on the daily ADX called a 'change in dominance'. This is where the ADX is above 20 and the +/-DMI swap dominance resulting is a 'V' type ending to a trend. The setup for the pattern was an ADX reading below 20 resulting in a consolidation in price. Then, price broke out and ADX began to move up. Then, without much of a pullback, price reversed and the -DMI crossed up over the +DMI causing the change in dominance. During this time, price was pulling back but the +DMI was still up so waiting for the two DMI's to cross would have resulted in missed trade. Looking out across other markets now, I see a similar setup in Soybean Oil (which I'm trading on short side). If this is a similar pattern, then two of the three steps have completed and this week should see price move down. DXY is another market that could be setting up the same pattern. It will be interesting this week to see how this plays out. Should it work, it could be an interesting pattern to tuck away for future reference British Pound may be another candidate for this pattern.
TVC:USOIL
by mxb1961
3
Strong Short, Tronox Ltd.Very good short play on Tronox Ltd. This stock has broken its upwards trend posting a lower high after 4 higher highs in a row and it is at the top of the linear regression channel. TROX has bounced off of a resistance line and is experiencing decrease in volume. The MACD is also about to crossover to a sell signal and the Directional Movement Index is showing a downwards trend. Also, the stock is in oversold territory showing at 65 and is about to cross under the 9 Day MA.
NYSE:TROXShort
by juniortrader