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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.
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