Tag Archive | "Know"

Know the Difference Between Trending and Trading


A couple of weeks ago we looked at the Force Index, which helped you determine the strength of a stock’s current trend. But what if you’re unable to determine if a stock is TRENDING at all? Then Force Index is of no use to you.

This is where ADX — Average Directional Index — comes in. It was invented by J. Welles Wilder, one of the most famous technicians in stock market history, in 1978. The purpose of ADX is to determine if a stock is indeed TRENDING, or if it is instead “trading.”

What’s the difference between trending and trading? Watch the video now, or read on.

In this episode, you’ll learn:

– The distinction between trending and trading (0:40)

– How ADX is calculated (1:46)

– How to read a stock’s Average Directional Index (2:51)

– How you can add an ADX underlay to your custom stock charts, free of charge (3:47)

The video also features an example of an actual stock chart with an ADX underlay so you can see the real thing in practice.

ADX does not measure or CARE if a stock is trending bullishly or bearishly — only if it is indeed TRENDING or instead, TRADING. The reason this is important is because many other technical indicators only work if a stock is actually trending, and a few others tend to work best in sideways markets. Thus, ADX is an invaluable technical tool.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

P.S. Next week I’ll show you how to identify and trade Exhaustion Bars, which are one-day candlestick reversal patterns. See you next week!

Episode 46 – Know the Difference Between Trending and Trading

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Things You Need to Know About Bonds


Many people purchase bonds simply because they sound safe without really understanding how they work. This potentially exposes investors to greater risks and reduces their returns. Here is a closer look at their basic workings. View full post on Investing Articles from EzineArticles.com

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You Know You Need to Invest Wisely – Where to Invest is the Question


You know you need to invest your money wisely but where to invest is the question. There are so many risks involved by investing in the stock market so is the stock market a good choice? Then there are the mutual funds however, these are still involved in the stock market so there is still a risk. View full post on Investing Articles from EzineArticles.com

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Things to Know About Investment Management


Investment management, two words that are in the mind of anyone that has invested in a company or organization. What exactly do these two words mean? Strictly by definition, investment management is the professional management of assets and securities in order to reach an investment goal that is beneficial to the investor. Assets and securities can translate to numerous things from stock shares to real estate. View full post on Investing Articles from EzineArticles.com

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Things You Should Know About Spread Betting


Earlier, financial spread betting was not that popular. Not many people used to involve in it. It was a measure to earn some extra money for few people. Now, before we get in to detail, let’s understand what financial spread betting is all about? There are many types of wagering and spread betting is simply any type of wagering as a result of a particular event. View full post on Investing Articles from EzineArticles.com

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cXVpY2tpbnZlc3QubmV0L3dwL3dwLWNvbnRlbnQvd29vX3VwbG9hZHMvNC1xLmpwZyI7aTozO3M6NjE6Imh0dHA6Ly9xdWlja2ludmVzdC5uZXQvd3Avd3AtY29udGVudC93b29fdXBsb2Fkcy8zLXFpbG9nby5qcGciO308L2xpPjxsaT48c3Ryb25nPndvb192aWRlb19jYXRlZ29yeTwvc3Ryb25nPiAtIFNlbGVjdCBhIGNhdGVnb3J5OjwvbGk+PC91bD4=