Normal
The only time I use the D+, D- ,ADX is when trading a Trending Stock which appears to be making a top --- as the stock makes higher HIGHS or is maintaing it's high , if the ADX lines are making a divergence , then this is generally a clear message that the tread is breaking down , (ADX set at 14days ) take this along with UP tails on candles , red candles , compressing price and the stock is sending a clear message ---- You should be out before the C/B stop is hit --- look at the OXR chart as it made its high .I also find the ADX usefull for confirming if a stock as it rises above a target is going into trend ( 14d ) as the trend develops (ADX 21 ) --- the ADX is a trend tracking tool not a breakout tool .C/B is only used as a confirmation tool (or STOP ) for Breakout or Rebound Trading -- it is not used on its own as a selection method --- again check the OXR chart , you'll see if C/B did not confirm the move , then it was a dead cat bounce .The best trading tool I've come across though is the Wormald Grid but this is defintly not a tool for new traders , first you must thoughly understand how to draw accurate Trend Lines and why they are placed where they are .Apart from intra-day trading , the bulk of my trades are now iniated by either rising triangles or flags , these can and often do turn into Trend Trade --- If it appears that is the case I pick the trade up again.Both Triangles and Flages can be entered at around the 2/3 development point , if you leave it untill they break the top line you are losing to much percentage -- in the case of LHG theres only around 7% to the target.Most of these trades are opened and closed in little over a week -- the day of the breakout above the top line is often followed by two UP days , hiting the target then a pull back , before an advance (if any )Cheers
The only time I use the D+, D- ,ADX is when trading a Trending Stock which appears to be making a top --- as the stock makes higher HIGHS or is maintaing it's high , if the ADX lines are making a divergence , then this is generally a clear message that the tread is breaking down , (ADX set at 14days ) take this along with UP tails on candles , red candles , compressing price and the stock is sending a clear message ---- You should be out before the C/B stop is hit --- look at the OXR chart as it made its high .
I also find the ADX usefull for confirming if a stock as it rises above a target is going into trend ( 14d ) as the trend develops (ADX 21 ) --- the ADX is a trend tracking tool not a breakout tool .
C/B is only used as a confirmation tool (or STOP ) for Breakout or Rebound Trading -- it is not used on its own as a selection method --- again check the OXR chart , you'll see if C/B did not confirm the move , then it was a dead cat bounce .
The best trading tool I've come across though is the Wormald Grid but this is defintly not a tool for new traders , first you must thoughly understand how to draw accurate Trend Lines and why they are placed where they are .
Apart from intra-day trading , the bulk of my trades are now iniated by either rising triangles or flags , these can and often do turn into Trend Trade --- If it appears that is the case I pick the trade up again.
Both Triangles and Flages can be entered at around the 2/3 development point , if you leave it untill they break the top line you are losing to much percentage -- in the case of LHG theres only around 7% to the target.
Most of these trades are opened and closed in little over a week -- the day of the breakout above the top line is often followed by two UP days , hiting the target then a pull back , before an advance (if any )
Cheers
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