Searle:
Now the trick is to go back to the turns and block out the rest of the chart on the right to see if somehow you can determine how the indicators work at these points. One thing is your second indicator should be the MACD if the ADX is above 20 or Stochastics if it is below 20. So in my chart of the CRB, you'll see the MACD giving the buy signal in mid November last year. It doesn't matter whether +DI or -DI is above. Nor does it matter whether the direction of the ADX is sloping up or down.
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Some make the mistake to wait for the Directional indicators to cross, and miss the best part of some moves.
Although I only play the puppies, if someone asks for my opinion and doesn't laugh in my face at the answer I recommend this for Canadians with RRSP's now that there is no FN. You'll notice the MACD signaling a buy while the ADX was above 20 near the beginning of August.
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Although the ADX fell below 20 indicating a somewhat sideways trend it is in a large range. Change the indicator to Stochastics, and although it shows to be overbought, on the hard right edge, it's turned up again. If it breaks out above the previous highs and the ADX gets above 20 again, change back to MACD to look for the next sell signal.
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I recommended it last October to a friend who took my advice against his wife's wishes and talked to him in July. Told him to sell if it got back to his purchase price, but it didn't and he's again a happy camper. Meanwhile his wife bought BBD.TO around 20 and thinks it will act the same:(
Love the long term chart and look at the MACD here.
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