Technical Analysis Indicators and Market Trends
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Market Trend and Directional Indicators
1. Trend: Direction, Trend Lines, Moving Averages, and ADX (an indicator that tells you in absolute trend what the market will do). When the ADX is above 20, it is a good moment to get into the market. If it is increasing but the market is going down, the downward trend is beginning.
Observe if there is a trend in the market using the ADX. The signal of the ADX is not related to the trend direction; 20 is the refresh level. When it is above the other two indicators, it indicates the latest top in the market. This system is useful to see if a trend exists.
Understanding Momentum and Trend Strength
2. Momentum: This represents the strength of the trend. If we have a trend but we don't have momentum, we could... Continue reading "Technical Analysis Indicators and Market Trends" »