One way to trade using ADX is to wait for breakouts first before
deciding to go long or short. ADX can be used as confirmation whether
the pair could possibly continue in its current trend or not.
Another way is to combine ADX with another indicator, particularly
one that identifies whether the pair is headed downwards or upwards.
ADX can also be used to determine when one should close a trade early.
For instance, when ADX starts to slide below 50, it indicates that
the current trend is losing steam. From then, the pair could possibly
move sideways, so you might want to lock in those pips before that
happens.
One of the major differences between the forex and stock markets is the number of trading alternatives available,There are so many advantages to trading Forex than trading stocks,Is trading forex better than trading stocks?
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