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To: Paul Viapiano who wrote (6134)	3/16/2001 1:05:06 PM
From: Paul Viapiano	Read Replies (1) \| Respond to of 8925

Also, re: ADX... Do you use this indicator to help signal a reversal...say if the stock is making a 2B test of high and the ADX is +40 or so...?

To: Paul Viapiano who wrote (6134)	3/16/2001 1:08:50 PM
From: Teresa Lo	Respond to of 8925

My Charting Setup: Each chart, in whatever timeframe looks like this: ottographs.com Bars are color coded. 20EMA in red. 20EMA from one timeframe up is in white. Yellow lines I draw by hand. Swings are plotted automatically with the OttoGraphs programming. Volume and 14 period ADX. As for your question, on the daily charts, you will find extremes in price action typically above 40 - this is why we can start "looking" for a bottom - because we know that it is "stretched". In parabolic moves, I have seen ADX on daily charts at 50 or more. Ultimately, we will need price action (reading the bars) confirmation to get into a trade. Never use an indicator alone because they just tell you where the "zone" is, not exactly where to get in - hence the name "indicator". Otherwise, it would be a "signal". T.