hen the value of the ADX is below 20, it means that the current Trend in the Prices is very
weak (Or it means that there is not a "real" Trend); whereas if the value of the ADX is above 25,
it means that there is a strong Trend in the Prices. In case that the value of the ADX is above 40,
that would be a signal of a very strong Trend.
- When the +DI line is above the -DI line,
it's possible that there will be a rise in the Prices;
if the +DI line is below the -DI line,
it's possible that there will be a decline in the
- If the ADX is above the value of 25,
while the +DI line breaks above (Goes from below to
above) the -DI line, it's a signal of a possible rise in the Prices. Whereas if the ADX is above the
value of 25, while the -DI breaks above (Goes from below to above) the +DI line, it's a signal of a
possible decline in the prices.
-George Lane's Stochastic Oscillator had been the classic oscillator since its invention decades
Common Default Value:
The Stochastic plots with two values: %K and %D. As an example, consider the price range of the
past two weeks. If the price is near the top of this range, the two-week Stochastic produces a
high %K value. If price hovers near the bottom of the range, it gives a low %K value.
The %D line, which is usually a 3-period moving average of %K, acts as the trigger line.
If the market is at the extreme (high or low) of the recent trading price range, there is clearly
strong momentum in one direction. But the momentum might be unsustainable. Hence, there
are overbought and oversold zones.
Stochastic values above 80 -> Overbought (look to sell)
Stochastic values below 20 -> Oversold (look to buy)
Combining both the %K and %D lines offers exact signals.
%K crossing below %D -> Sell signal
%K crossing above %D -> Buy signal
4) Commodity Channel Index (CCI)