Ken Calhoun - Wilder’s Average Directional Index Using ADX
If you’re like a lot of traders Ken Calhoun work with, you sometimes hesitate before getting into a new trade. This can be really frustrating when you see the stock or ETF you were about to enter skyrocket up without you, right? Finding a useful “confirming entry signal” that’s easy to use was always a challenge… until the ADX came along. It’s the only “lagging indicator” that tells me what to trade… ahead of time! That’s right…I’ve found that when the ADX indicator breaks over certain signal levels, breakouts often continue and provide great trading setups you can use over and over again. I put my own real money on the line every week with real trades — and I’ve tested out my techniques for using the ADX as a leading indicator extensively, for many years. One main challenge my traders tell me about is the difficulty they have in spotting what’s genuinely volatile BEFORE it makes a big move (whether that’s a stock or an ETF)… ADX Breakout Strategy: I, Ke