Causes Of Toddler Heart Palpitations

Trading: establishing the existence and strength of a trend. Part Two.

In the first part we talked about the importance , Trading, to recognize both the strength and direction of a trend.

now turn our attention to the first factor, which means to have a Trader in order to identify whether a trend is strong, and reliable, or whether its weakness could be a harbinger of a potential reversal.

This analysis is essential before opening a position.

In today's chart of the Standard & Poor's 500 are at the bottom, ADX indicator, designed by the famous J. Welles Wilder, known for his invention of several important tools that can help the trader in its decisions.

the ADX, which in turn formed by two other important indicators DI + and DI-, by both numerical and visual information on the strength of the trend in place. Adx higher the stronger the trend , while values \u200b\u200bof the indicator detect a weak trend or an absence of trend, then a situation of trading range.

In books on trading (and on the Internet) is often talked about this tool and its importance, but as sometimes the information is reported with a little 'approximation.

I refer in particular to the fact that almost never mentions the setting of the indicator, the number of periods to be considered for the collection of information.

normally take for granted the number 14 which is set by default from the main trading system, but in our experience this is not always the best solution.

This is because to 14 times the supply of Adx pua or false whipsaw signals.

more reliable in our experience is the setting with a greater number of periods, such as a good reliability indicator is achieved by manually moving the calibration of the indicator to 34 periods as in the above chart.

As we can see, in the bottom of the chart are the ADX, which expresses values \u200b\u200bwith the curve of black underneath the red line, drawn at a level 15 we can assume that, given the setting chosen, a valid line between a phase of and a range of trends.

If you decide to use the 14-period setting, the line should be raised to 20, under which there is no trend, between 20 and 40 and over 40's trend we are witnessing a strong trend. In the latter case

store some attention in the overall evaluation, because we would be in the presence of a trend in sfociabile potentially overheated and a correction.

dell'Adx The importance is especially significant for the trend-following strategies , implemented by the operators who take positions appended to the trend already in place in order to exploit the movement.