14. How to use ADX? Use oscillators or credit spreads to trade these consolidations. If Bearish patterns develop and breakdown, look for ADX to move higher, this time indicating a trending move on the downside ADX declines below 30 is interpreted as a consolidation after a trending move Start booking profits if the ADX makes a top or flattens out ADX at an extremely high level of 45 or above is interpreted as a market in a strong trend with a consolidation expected anytime Use trend following systems MACD, Moving Averages, EMA ADX above 30 is interpreted as a strong trend Use trend following systems MACD, Moving Averages, EMA ADX rising from 15 to 25 from lower levels means the trend is strengthening Indicating the use of oscillators Stochastics fast and slow. ADX less than 20 is interpreted as a weak trend or consolidation
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32. 5 Days of Mayhem- November 3 being the last day in this graph