Hubert Senters here.
Let’s go over the importance of using a free and cut indicator called an ADX. Now, heads up, tt’s a little laggy but tons of indicators that are free are laggy but it is very useful. So I’m going to give you a quick crash course on ADX. It is the indicator at the bottom of your screen called ADX.
When it’s above. Let’s zoom in here so we can see this thing a little bit better. Give me a second. I’m a positive. Oh, that’s much better looking. So here’s the gist of this indicator. Now, I’m looking at Roku. You can look at whatever you want. This is just a decent example. There are some other things on here.
The green line is considered the threshold line above $20 tt’s trending below $20 it’s non- trending when it’s below $20 it’s going turn from yellow to red. So in this example, I wouldn’t want to mess with Roku in between this period of time. I want to leave it alone and then I could start trading again.
Now, it won’t tell you if it’s going go up or down it’ll just tell you that it’s trending. It’s still useful though. So here’s another example this is a little swath of time where you want to leave Roku alone. And it’s not happy so leave it alone. And then you can see ADX is above $20. It’s trending both up and both down.
Now for me, I just use it if it’s above $20 I’m probably in a good trending stock of sometime and then I’ll figure out if it’s up or down based upon Ichimoku whether it’s above or below the cloud.
Mark Helweg is going to be doing a special webinar on ‘’How to Potentially Profit from Huge Market Moves without Predicting the Price Direction of the Market,’’ Tuesday, October 1st. Let me make sure I got this right. That’s right Tuesday, October 1st and 8PM EST.
Good luck. Hope it helps. See you on the next video.