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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Roger Schelling who wrote (7276)	6/20/2001 5:49:49 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 8925

Roger - that page has incorrect information on it. They say: The ADX is read like an oscillator. A high positive value is commonly interpreted as bullish average movement. A low negative value is interpreted as bearish average movement. This is incorrect. ADX never goes negative, and neither do DI+ and DI-. ADX itself measures neither 'bullish' nor 'bearish' movement, it is a trend strength or 'quality' measure. As you know, trends can be strong in up or down directions. And if you think about what Aspen is saying in that paragraph "A high positive value is commonly interpreted as bullish average movement, its easy to realize that there is error in their thinking, because when prices are plunging fast and for an extended period of time, ADX will most certainly be at a high positive value! I'd forgive the writers of that page but it is Aspen Graphics after all, a charting vendor. You'd think they would get it right! ;) Lots of info on the internet, not all of it good info. FYI. Probably 1000 posts back on this thread there was an ADX discussion that kicked up - I think Teresa put up some excellent info. If I run across the link I will bring it forward again.