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.
ADX
Possible buy, or wait and then buy...Looking for either a BB bounce, or for the MA Exp Ribbon to flip and for ADX to go up a bit, in which case it will be a buy. If it bounces off, then it will most likely rally for a little while (a day?) and might go up... or down... ya' never know
But seriously talking, if those BB's expand or ADX goes up, there's a big chance that will be an uptrend.
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.
USOIL - 1D - patternthis is what I see on TVC:USOIL chart :
- trend line forming in the middle of parallel channel
price crossing it could create hesitation.
- RSI had similiar pattern but already brake out
- ADX makes a lower high. This could indicate a sideway movement.
should wait for new trend to take place
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.
JCP Bullish TriangleBullish triangle on the JCP chart, watch for a breakout if the price clearly passes and closes above resistance. Chart also has clear indicators of a stong trend with the DMI showing an uptrend and the Aroon showing new uptrend. Would like to see an increase on the OBV along with the others for clarification of a strong trend though.
NeoPhotonics Corp Strong UptrendLong until DMI shows slowdown of trend, reasons for uptrend shown on chart.
Resistance Broken & Stong UptrendResistance has been broken and a strong uptrend is occuring. Watching the DMI to see when the trend slows down, long until then.
Erickson Inc SwingErickson Inc set up for a swing trade. Reasons shown on the chart, but several other reasons are also the RSI is gaining strength, CCI has moved up over 0, and MACD is showing a buy signal.
EnteroMedics Swing TradeETRM looking like a solid swing trade, Reasons shown on the chart along with a second chart with other reasons linked to this idea.