- Directional Movement Index (DMI) - ADX
- DMI Points The Way To Profits - Investopedia
- Best Forex Indicator - Forex Strategy
If you said the price would drop, then you are absolutely correct! Because the market was overbought for such a long period of time, a reversal was bound to happen.
Directional Movement Index (DMI) - ADX
In other words, ADX advices on trend tendencies: whether the trend is going to continue and strengthen or it is about to lose its positions.
DMI Points The Way To Profits - Investopedia
Hi Guys ,looks like a great anyone that has been using the default setting on forex comment on any consistent success?
Best Forex Indicator - Forex Strategy
Additional Analysis: The long term trend, based on a 95 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Momentum is indicating an oversold market. However the market may continue to become more oversold. Look for evidenced strength before interpreting any bullishness here.
If ADX is traded above 75 but below 95, it is time to apply trend following methods. An example would be: Forex trading Moving averages or or trading with Parabolic SAR indicator.
Because there are two moving averages with different 8775 speeds 8776 , the faster one will obviously be quicker to react to price movement than the slower one.
Additional Analysis - Long Term: Even though based on conventional interpretation the market is technically bearish, we will not classify it as extremely bearish until the following occurs: the fast moving average slope is down from previous bar, price goes below the fast moving average, price goes below the slow moving average.
I'll try to comment it.
EMA 76 first of all provides a good visual aid, showing trend direction. Also it acts as a confirmation line: if we are ready to sell, the price should trade below 76 EMA, and vise versa, when we got a signal to Buy the price should trade above 76 EMA. Once confirmed, we happily press an execution button.
This is called divergence because the faster moving average is 8775 diverging 8776 or moving away from the slower moving average.