Take profits when ADX turns down while above +DI and -DI.
Exit short trade and trade only long as +DI has crossed to above -DI.
Go long as ADX starts rising while above -DI.
Take profits when ADX turns down while above +DI and -DI.
Exit long trade and trade only short as -DI has crossed to above +DI.
ADX continues to fall so there are no trades.
Trade only long as +DI has crossed to above -DI.
ADX turns up while below +DI and -DI, but does not rise by the recommended 4 steps, so no trade is entered.
One view is that you should go long whenever ADX rises above -DI, but ADX has remained very low and flat and it would be advisable not to trade until ADX has risen by at least 4 steps above its recent low.
Trade only long as +DI has crossed to above -DI.
Go long when ADX rises above -DI.
Exit long trade when +DI falls below -DI.
OOPS SORRY MY MISTAKE... THIS IS ADX AND NOT ATR...
I have seen some posts where some members are stating that ATR is
an excellent indicator. How is it used to determine entry/exit points?
Ignored
ATR is more an indicator that helps you set your postion size, stop loss, and profit target. its not really used very much for entry points.
the way you use it for your stoploss and profit target is that you take some multiple of ATR.
for instance, you might use a 3x multiple for your stoploss, and a 6x multiple for your profit target. if the ATR on EURUSD hourly bars is at 0.0021, that makes your stoploss 63 pips, and your profit target 126 pips.
btw, before using the ATR you must understand what it is. if you are looking at daily bars, the ATR is the average distance covered by the price in a single day. thats why its so useful for setting stop and profit targets, because tells what size move is "normal".
