Sign-up for our 21 day free trial!

The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)

1. Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.

2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.

3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.


Get Directions Average Directional Indicator (ADX)

Asking for Directions (ADX)
 The saying goes men never ask for directions.  Somehow we know by instinct which way to go.  Either that or we are simply too proud to admit that we are lost.  I have to admit I am one of those hard heads that will not stop and ask.  And when I finally do I only half listen to what they are telling me.  Come on admit it if you are a male you are probably at least a little like me.  

 When it comes to stocks I do not mind asking for directions.  When my money is on the line I want to know which way to go.  I will ask the chart which direction the stock may go.  One indicator I use for this purpose is the ADX (the directional indicator).  

 The uneducated investor does not even know to ask for directions.  One reason is because he does not know where to ask for them.  Most of the herd is out there guessing the direction on a daily basis; they put money into stocks that are in clear downtrends because they view them as cheap.  They do not know that charts and indicators can give them advance notice of a stocks movement.  Charts are like having a map of the market for you to consult when you are not sure of the direction. 

Average Directional Indicator
 Continuing our indicator series tonight let's talk about the Average Directional Indicator (ADX).  The ADX is another oscillating indicator.  It moves up and down with the strength of the trend and fluctuates between 0 and 100.  Even though the scale is from 0 to 100 readings above 60 are rare.  Readings below 20 indicate a weak trend.  Readings above 40 indicate a strong trend.  The indicator does not take into consideration if a trend is bullish or bearish it will only measure the strength of the current trend.  A reading above 40 may indicate either a strong downtrend or a strong uptrend. 

 The indicator is very simple.  If the ADX line is pointing up the trend is strong regardless if bullish or bearish.  A flat ADX line means there is no direction and the stock is not trending (it is trading flat).  This indicator helps us access the strength of the current trend no matter which direction the stock is going. 
 The ADX is further broken down by two separate indicators; they are referred to as DI and DI.  (DI) is short for Directional Indicator.  These two lines will fluctuate more than the ADX (solid black line) indicator.  Both indicators are also used to show the strength within a trend.  DI is normally a green line while DI is a red line.  DI shows the positive strength while DI shows the negative strength.  If DI is on the top of DI with the ADX line trending up this is a signal to trade long.  If DI is on top of DI and the ADX is pointing up this is a signal to trade short.  The key is ADX must be trending up.  If it is not then the indicator is telling you there is no clear direction (the stock is trading flat).  

 The next time you look at a chart look at the ADX for direction.  Those that do not pay attention to direction are likely to end up lost.

Copyright 2003-2006 StockTradersHQ.com is owned and operated by The Winners Edge a subsidary of DMC Systems LLC. All rights reserved.   This web site is optimized for Internet Explorer 5.0 or greater!DISCLAIMER  [Articles| Bulletins| Charts]

^GoTo Top^

Buy Outlet Canada Goose Jackets Parka Online Buy Replica Prada Clutch Bags Online Buy Replica Hermes Birkin Bags Online Buy Replica Celine Clutch Bags Online Buy Replica Christian Louboutin Shoes Heels Online prada bags replica celine bags replica christian louboutin shoes replica hermes birkin replica canada goose jackets outlet Replica Canada Goose Jackets Parkas Coats Vests Outlet Sale Replica Hermes Birkin Bags Kelly Handbags Replica Prada Clutch Bags Messenger Handbags Outlet Sale Replica Celine Luggage Tote Bags Replica Christian Louboutin Shoes Heels Sandals Pumps Outlet Sale Canada Goose Jackets Sale Prada Mini Luggage Tote Bags Sale Hermes Birkin & Kelly Bags Sale Celine Mini Luggage Tote Bags Sale Christian Louboutin Shoes Heels Sale Celine Bags Luggage Tote Mini Outlet Sale Prada Bags Clutches Purses Outlet Sale Canada Goose Jackets Outlet Sale Toronto Christian Louboutin Shoes Boots Outlet Sale Hermes Bags Birkin Purses Outlet Sale Canada Goose Jackets Canada Goose Jackets Outlet Authentic Canada Goose Outlet Buy Canada Goose Outlet canada goose outlet cheap canada goose sale Canada Goose Online Jackets Canada Goose Parkas Outlet Buy Canada Goose Parkas Cheap Canada Goose Jackets Canada Goose Outlet online Cheap Canada Goose Men Jackets canada goose cheap canada goose men outlet canada goose outlet canada goose jackets sale Official Canada Goose Jackets Men Online Shop Official Celine Bags Luggage Tote Mini Online Shop Official Prada Bags Luggage Tote Online Shop Official Hermes Bags Birkin 30Cm Online Shop Official Christian Louboutin Heels Shoes Online Shop Designer Christian Louboutin Shoes Heels Sale Outlet Designer Celine Bags Luggage Tote Sale Outlet Designer Hermes Bags Birkin Sale Outlet Designer Prada Bags Messenger Sale Outlet Designer Canada Goose Jackets Men Sale Outlet Cheap Canada Goose Parka Canada Goose Jackets Online Hermes Bags Birkin replica Prada Bags Clutch Sale Replica christian louboutin shoes outlet Canada Goose Men Jackets Outlet celine Luggage Tote bags Canada Goose Outlet Store canada goose outlet Hermes Birkin Handbags Outlet Sale Celine Handbags Trapeze Outlet Christian Louboutin Shoes Outlet Sale Prada Handbags Clutch Outlet Sale Canada Goose Parka Outlet Sale canada goose mens parkas Christian Louboutin Shoes Outlet Celine Micro Luggage Tote Bags Outlet Canada Goose Jackets Men & Women Outlet Prada Clutch Bags Outlet Hermes Birkin Bags 30Cm Outlet replica hermes birkin, celine handbags, Replica bags, canada goose outlet sale, Canada goose Oultet sale Cheap online Canada Goose replcias ealatorre fake louis vuitton www.azaadsource.com high quality celine Shop Canada Goose cvcargo Canada Goose Outlet sale