December 10, 2017
Steel Dynamics (STLD) broke out of a 2-year consolidation pattern on Friday and hit a new 52-week high. This pattern is a classic "ADXtra" which features a low ADX and a "Cross and Hold" DMI pattern.
The key feature of this crosos and hold setup is the +DMI which makes a cross above the -DMI, and then "holds" a low above the the -DMI high. You can also see a "higher" pivot low at a rising 10 SMA.
The ADXtra pattern triggers when there is a new +DMI high above 25 AND a new high in price (breakout).
Not all breakouts have follow through, but this signal has a classic form, and last week's volume was higher AND above average, and this adds to confidence in the setup.
I'm busy working on my blog posts. Watch this space!
STLD ADXtra Breakout
December 2017 (1)