One of the difficulties in trading is that it is not easy to determine whether a trend will continue or whether it is poised to reverse. Correct risk management will ensure that an incorrect trade ...

Entering into a fading or weakening trend is one of the most frustrating things a trader can encounter. Many traders have strategies for trend entry but if a trend has run its course and is weakening ...

Detecting a strong directional move is the most important skill for all traders to have. Trend chasing is the most popular technical method of profitable trading. But stock prices spend more time in ...

In the trading world, having the right tools and knowing how to use them correctly can be the difference between success and failure. One such tool is the Average Directional Index (ADX), which is ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Somer G.

I am often asked about my use of indicators in addition to price patterns. Remember, all indicators are derivatives of price. So, as a general rule my attitude has been why study indicators when I can ...

ADX stands for Average Directional Movement Index, an oscillator driven by a mathematical derivation used in technical analysis to assess the strength of a price trend in a financial security.