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Because stock trading is not a game




This demonstrates a continuation of the up trend after a short correction, resulting in a 10+% move (picture below).

1, 2, 3) The +DI (green) and -DI (red) indicators of the DMI (ADX) indicator in the lower pane are fascinating to watch.  Here we see a succession of three tops of the -DI and three bottoms of the +DI, where the -DI tops are successively lower, and the +DI bottoms are successively higher.  There is a failed -DI, +DI cross-over between 2 and 3.  This indicates that the +DI is gaining strength, the -DI losing strength, and soon we should see a DMI pattern that indicates a solid up trend (+DI above -DI, and ADX, the blue line, in an up trend).

The rest of the indicators show a short term down trend bottoming out, and a high probability of the up trend continuing.  Price is at the lower channel line and basing for several days, fast stochastics crossing slow stochastics around 20, short MA's squeezing together (see brown Squeezed MA indicator line), MACD is bottoming out on the zero line.

TradeSetup 2

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