Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The previous examples for this ADX pattern show how this pattern works on a daily chart. This fourth example shows the same ADX pattern on a 1 minute chart for the mini Dow futures contract symbol YM. This ADX pattern consists of two characteristics. First, the ADX line should be above the Trend Level. Second the DI- line should be above the DI+ line. The higher these lines are the better.
On the chart below the at point “A”, we can see this pattern forming. The ADX line is above the Trend Level and the DI- line above both the Trend Level and the DI+ line. When this pattern occurs it indicates the price action is making a bottom. At point “A” you can see the price action formed a bottom when this ADX pattern occurred and then the price action started an up trend.
ADX and a 1 minute chart
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