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To be a successful trader you must know when a trend is starting, the strength of the trend, and when the trend is ending. Knowing these trend events is crucial since a trend is the fundamental market mode for most profitable trading methods. Having access to this trend information when it is timely and accurate can dramatically increase your trading profits.One of the most commonly used yet outdated tools to identify trends is the ADX indicator.<a href="http://www.customizedtrading.com" target="_blank">tradestation indicators</a>

The ADX line rises to show the strength of a trend. The most accurate means of using the ADX is to only pay attention to a rising ADX line, since that is when the trend strength is the strongest. Most ADX Indicators have a threshold level line somewhere around twenty or twenty-five. When the ADX is above that threshold you have a trending market and when it is below that threshold it is not trending. It's important to know these details about a trend, unfortunately, the ADX is too "hit and miss" at delivering this important trend information.A huge problem with the ADX Indicator is the long "lag" recovery time that occurs after a strong up move. Just look at a chart with a quick strong downtrend followed by an immediate upward movement.Another ADX deficiency is that it gives no information about the direction of the trend. I know you can use other indicators like the DMI+ and DMI- to get the direction of a trend, but I want each and every indicator on my chart to provide the most amount of accurate and timely information as possible. So why not use a trading indicator that does a lot more than the old outdated ADX Indicator can?

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Not sure why you started a thread with what appears to be a copy and paste from elsewhere, with information that makes trading seem like "if trending up/down, then buy/sell." If it were that easy, then everyone would make money at it, and automated systems would make millions every day.

 

Trading is about supply and demand; if one of those elements is not there, sure a trend can take hold, but given one can have trends within trends, that where people - and certainly indicators - lose money.

 

Once you learn to recognize where the supply and demand points are on a chart, that's when profits can be attained, IMHO.

 

Oh, and don't believe everything you read on the web; many just want to sell you their road to millions of dollars of profit, for $149.99. Makes sense, right? ;)

Edited by osijek1289
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