Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
This article shows a second example of the ADX pattern presented in the previous posting. As a reminder, here are the the two characteristics we are looking for. First the ADX line should be over the Trend Level and the higher the better. Second, the DI- line should be above the DI+ line and the higher the DI- line the better. When this occurs it indicates the market is forming a bottom.
The chart below shows the daily chart for Microsoft, symbol MSFT. At point “A” the ADX has formed the pattern for which we are looking. The ADX line is high above the Trend Level and the DI- line is above both the DI+ line and the Trend Level. When this setup occurred at point “A” Microsoft made a bottom and turned up.
ADX and Microsoft
end;
