Jeff,
ADX measures the PRESENCE and STRENGTH of a trend, a value over 30 usually means a stock is trending strongly... a strong downtrend/uptrend will create a high ADX. The companions to ADX is the DMI or Directional Movement indicator, they reveal which direction the trend is heading, when the +DMI is trending higher than the -DMI it's bullish.
In the case of PAYX, ADX is in a nice uptrend, but the -DMI is actually above the +DMI but, and it's a big but, the +DMI has turned sharply upward and should cross above the -DMI and possibly the ADX which could mean a significant breakout.
In my experience, a totally bullish scenario would be when the ADX is trending upward and is crossed by +DMI.
I use a Bloomberg terminal at my office for charting and I haven't had a chance to check the results after close, i'll post back here in the A.M. what the current ADX results are.
I'm actually excited about earnings, the technical buy signals confirmed my entry, PAYX reports on the 29th and it looks like were in the middle of the pre-earnings runnup... i'm looking for it to continue well into next week. Good luck. Dave |
