ADX : Average Directional Index

ADX can be used to defind both the trend strengthen and trend direction

• when adx begins to strengthen from below 20 and move above 20, it’s meaning that the range trend is losing and the trend is developing.
• when adx begins to weaken from above 40 and move below 40, it’s meaning that current trend is losing trend and range trend is developing.
• when +DI is moving above -DI, Up trend is developing.
• when -DI is moving above +DI, Down trend is developing.

To trade with head & shoulder pattern, you need to find out where the neck line is. And enter the trade only when the neck line has broken.

Neck line can be determined as the two swing low inside the shoulder.

Let’s see.

When the candles do the retracement, the swing high / low is shown.

In this case the red candle is the up candle and the white candle is the down candle.

Let’s see….

When swing high formed, we can assume that the swing high point is the resistance line.

When swing low formed, the point is the support line .

Waiting for the retracement can help us know “Does the MA Cross shown to me the right angle?”.

The Price Action is a fundamental trading strategy and all trader should learn about it. To determine the price action , first you need to find out the “swing high”, “swing low”, “lower high” or “higher high” and “lower low” or “higher low”.

The Down Trend should be determined when the SWING HIGHS are LOWER HIGHS and the SWING LOWS are LOWER LOWS. And enter the trade when the lowest low was broke down.

The Up Trend can be determined by the swing highs are higher highs and the swing lows are higher lows. You should enter the trade when the highest high was broke up.

1. Unemployment Rate
2. Interest Rates (FOMC Rate Decisions)
3. Inflation (Consumer Price Index)
4. Retail Sales
5. Producer Price Index
6. New Home Sales
7. Existing Home Sales
8. Durable Goods
9. Non-Farm Payrolls
10. ISM Non-Manufacturing
11. Consumer Confidence
    
12. Indutstrial Production

The red arrow shows that the inside bar has formed and with the stoch signal that shows the down signal , the price move down after that.

The Inside Bar is the bar that stay inside the high and low of the previous bar. Its low is higher than the previous bar low and its high is lower than the high of the previous bar.
The inside bar can indicate the slower move in the market and it indicates that the trend may change, BUT it need another tool to get the confirmation.

When the candle bounce back at the Bollinger Bands and The Stoch is crossing … it’s time to Buy Or Sell and got some nice pips.

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Trade The VOLUME : Volume indicators are used to determine market interest. High volume (especially near the bottom of the market) can indicate the start of a new trend while low volume indicates investor uncertainty.