Hubert Senters here.
Let’s take a look at Tesla. It’s up $63 or almost 8 percent. Let’s put a little bit higher target on this bad boy to give you something to go for.
So we’re going to use the standard good old fibonacci projections. Now, before I do that let’s talk a little bit about the ADX.
The reason I use the ADX is to tell me if something is trending and happy so here’s how I use that and then I tell you what.
Then in tomorrow’s video i’ll give you the target for Tesla. So first off I use a 14-period lookback period.
You can use whatever you want and I know a 14-period on a daily chart is a little laggy. I’m ok with that because it’s almost it’s going towards $20 o shifting that direction.
I’ll use it but here are the rules that I like to use it. I’m going to zoom in here a little bit. There you go. Let me compare this.
The ADX is the yellow slash red line. The line in the sand is called the threshold line. I’m using the $20. You can use whatever you want like I could.
We can come in here and fiddle with the threshold, the trigger line and then we can make it $15 if we want to. We can also make the look back period smaller if we want to.
Mess around with it and see what you like and you can curf there if you want to. I’m not here trying to curf anything so I’ll usually use the standards on it almost everything.
So if the ADX is above $20 it means that whatever I’m looking at is probably trendable and tradeable.
If whatever I’m looking at is below $20. In other words if I’m looking at the red line below the green line it’s saying good luck try to squeak a profit out of that bad boy.
I’m not saying it’s impossible. I’m just saying it’s going to be hard for me to do. But if it’s trending when the yellow line is above the green line that’s going to increase my odds of making some money because the equity or the future or whatever I’m trading or charting is in a trendable mood.
I’ve been asked to speak at the Wealth 365 event. The subject that I’m going to share with you when I get over there is ”How to Find New Trend Trades in Two Simple Steps.”
And that’s going to cover you for both the upside and the downside and it’s super simple and easy to do. I’m going to HYPERLINK you to the registration page.
Good luck. Hope it helps. See you on the next video.
Hubert.
