Monday, July 7, 2008

ADX with Stochastic Strategies:


ADX: define trend force, whether the trend will develop further or will gradually weaken.Three lines in ADX:1) +DI (Yellow)2) -DI (Red)3) ADX line (Blue)Stochastic: compares a stock's closing price to its price range over a given period of time.Using the both will give traders great forecasting trend strength.Two lines in Stochastic:1) %K: This is the number of time periods used in the stochastic calculation.2) %D: This is the number of time periods used when calculating the moving average of %K.Signal to buy: When either %K or %D falls below the line, and then again crosses the bottom level upwards or when the curve %K crosses the curve %D from below upward.When +DI is higher than -DISignal to sell:When oscillator grows above the line, and then crosses the top level downwards or when the curve %K crosses a curve %D from top to downward.When +DI is lower than –DI

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