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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (3442)	12/22/1998 1:56:00 PM
From: Loren	Respond to of 17183

Len - ADX is part of the DMI/ADX indicator system. DMI stands for Directional Movement Indicator... it is an indicator that moves based on relative changes in lows vs. highs, similar to MACD, tells you what the trend is (up or down). The indicator is detailed in most TA textbooks. ADX is an oscillating indicator (oscillates between 0 and 100) which is built from the DMI indicator. When it is low, it indicates that the stock is trendless... when it is high, it indicates that the stock is in a strong trend. Keep in mind that the ADX does NOT tell you whether the stock is in an UPTREND or DOWNTREND. That is what the MACD or DMI is for (I prefer MACD). The ADX simply tells you the strength of the trend. Typical signals or rules might be: 1. BUY when MACD histogram crosses up over zero, and ADX is 25 or more and RISING (the trend is up, and it can be trusted...) 2. SELL when MACD histogram crosses down below zero (the uptrend has broken down...) I'll look to show you a graphical example at some point... right now, I have to get done with a couple of things so I can leave the office, help my family finish pack up our vehicle, and start driving to Florida for Christmas...! It's 25 here in Memphis (the SOUTH?), and I'm looking for warmer weather... :-) Loren