Hubert Senters here.
On the last video, we were talking about Ichimoku, how to scan for the Ichimoku and I said I use another indicator to tell me if a particular thing is trending or not. This is free on almost every platform out there. It’s called the ADX is right here. I am going to double left click on it for you so you can see my settings.
I’m using a $14 period and my trigger level is $20, sounds confusion though it’s not. All that means is that I’m going to line in the sand here at $20 which is my trigger level and if I’m looking at this thing I know that above the green line like this right here means I can trade it. It’s trendable and it is in a really good mood.
If it drops below the green line, below $20 it is choppy and sloppy and I’m probably going to lose some cash, so that is the ADX. And then we just take it a step further so now I’m going to remove my ink and I’m going to move my camera over here to the left again so you see then I’m going to move my chart so you can see what I’m doing.
Now, I can do the same scan that I did for you the other day for new above or below the cloud, new below low. And I know I’m going to focus on the ones that have yellow because they are trending, the ADX reading is $20 or above.
HPQ newly above the cloud and the ADX reading is above $20. Here’s ISRG new above, above the cloud and is also trending actually HPQ is better. See how HPQ angle of attack on the ADX here is actually substantially higher than the one on ISRG is kind of flat line.
I would go with HPQ on that example. KLAC that one just barely closed above the cloud. You can barely see it. I’ll zoom in here. There you go you can see it trending. So that’s how I use it.
Hopefully it helps you and I’ll see you on the next video.
Hubert.
