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ADX/ DMI rules from Dr. Schaap. Be a better trader.
Gold Futures chart - Pivots and Trendlines - Read 'Em 'N Reap!
Signals from ADX/ DMI help us recognize and manage periods of low volatility that may lead to profit opportunities.
When the trend enters a range period, ADX/ DMI are <25 and moving sideways. Swing trades off support and resistance are appropriate. See Dr. Schaap's diagram of this strategy on page 134 of ADXcellence--Power Trend Strategies.
The symmetrical triangle in the chart of gold futures is confirmed by low ADX. A breakout, or a failure to break out, is imminent, and ADX/DMI provides the clues to a potential power trend. ADX has been moving sideways for a period of >30 bars, so review the ADXodus and ADXtra trading strategies in the book.
Conversion Triangle
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