ADX Reversal Patterns by Charles B. Schaap
ARTICLE SYNOPSIS ...Stocks & Commodities V. 25:3 (64-67): ADX Reversal Patterns by Charles B. Schaap
When is the trend not going to continue? The average
directional movement index can provide you with information you need to differentiate between the end of a trend, a consolidation, and a reversal.
Recognizing a change of trend is important for successful trading. The earlier you can enter a new trend, the lower the risk and the greater the chance for profit. Your trading will become more effective when you can recognize the end of one trend and the beginning of another.
MEASURING TREND STRENGTH