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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (58700)	8/31/1999 11:38:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

Susan after you are used to it, you can drop the +DI and -DI completely and just use the ADX.. In the beginning I needed all three but when I follow more 'normal' stocks like BTH, ELBO etc. I need only the ADX.. In order to get rid of the +DI and -DI just change their color to white so you won't see them. It won't take you long to just stick with the ADX.. But the ADX will not respond as quickly to trend changes, although the movement will be more 'sure'. In place of the +DI and -DI you can use the momentum oscillator. That is a bandit but also causes more whipsaws. But if you just use the momentum indicator and it moves up, use it as a 'get ready looks like something is about to happen' indicator you will soon see the movement in the ADX as well which will be the confirmation. Another tip, you don't even need the bollinger bands.. All you need is the 20 day moving average and use that as resistance. You can use the candlesticks if you understand them basically. I am much better with candlesticks end of day than intraday, but I can pick up the 'more blatant' ones. If you use 'high low close' 5 or 15 minute bars, you can watch the inner bars and when they contract and expand together with the other indicators you can expect a trend change. For example usually, but not always, the first bar that closes above the 20 day moving average, a buy signal, if its confirmed by other indicators (ADX, Momentum etc), you will see a wide expansion of the bar (what they call range expansion). (you could liken it to the large white candle, engulfing candle or long white shadow).. In this respect you don't have to understand the candlesticks but just look at the inner bars and the range between the open and close. I don't usually 'perceive the 3 candle patterns' intraday, I have to read more up on that.. Some are easy like the abandoned baby, etc but others are not so easy and by the time I 'make them out' the stock has gotten out of reach. Keep it relatively simple. Usually the opposite happens when the stock dries up and changes into a downtred, the inner bars are tiny and open and close are very near.. The next bar could be disaster the ....long black candle.. yuck! I had that long black candle today with HLIT which is why I did not sell at the high and furthermore by the time the second black candle appeared volume was INCREASING on the downtrend which is not good, so I sold.