Day Trading Signals – Different Sets of Signals For Different Market Conditions
When a market is trending, use a continuation signal. When a market is ranging, use a reversal signal. All markets tend to go through periods of either strong trend movements or periods where they move up and down within a narrow trading range. Generally it has been observed that the ADX (average directional index) indicator can be used to determine whether a market is in either phase. Of course ranging or trending activity can be visually confirmed on the charts but this ADX indicator can also confirm this more accurately.- >>more>>>