Su's ADX signals



Primary signals: (green line can either be making V top or bottom)

green line making V bottom, and red line cuts green line from below at or before V = sell signal

green line making V top, and red line cuts green line from top at or before V = buy signal

all 3 lines V close together = Take action! Trend change imminent! (place tight stops, enter)

small center bubble or near-bubble: (the smaller the bubble the better)
red above blue = buy
blue above red = sell
multiple bubbles = congestion = play the breakout
bubble followed by secondary signal confirmation may indicate long lasting trend

Green line pointing up = market is trending
Green line pointing down = market is not trending
Green line flat and/or changing = trend is changing

Secondary signals: (not as reliable, and sometimes come a little late)

red crossing green from above = buy signal
blue crossing green from below = buy signal

red crossing green from below = sell signal
blue crossing green from above = sell signal

any extreme peak = warning signal

Signal negation:
Congestion negates signals; play range breakout instead.
Use this in combination with other indicators/methods and with seasonals.

Misc:
Blue line tends to show congestion better than red.
Red line reflects highs and lows better. Red peak is buy signal, red valley is sell signal.

Months:
F=Jan, G=Feb, H=Mar, J=Apr, K=May, M=Jun, N=Jul, Q=Aug, U=Sep, V=Oct, X=Nov, Z=Dec