"The first requirement is for ADX to be trading above 25. This ensures that prices are trending. Many traders, however, use 20 as the key level. A buy signal occurs when +DI crosses above - DI. Wilder based the initial stop on the low of the signal day. The signal remains in force as long as this low holds, even if +DI crosses back below - DI. Wait for this low to be penetrated before abandoning the signal. This bullish signal is reinforced if/when ADX turns up and the trend strengthens. Once the trend develops and becomes profitable, traders will have to incorporate a stop-loss and trailing stop should the trend continue. A sell signal triggers when - DI crosses above +DI. The high on the day of the sell signal becomes the initial stop-loss."
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