However, the does not indicate if the trend as or . It merely indicates the strength of the current trend.
Also, does not give entry or exit signals. It does, however, give you some perspective on where the stock is in the trend.
HOW IS IT USED ?
When is between 0 and 20 it indicates that the stock is in a trading range and you'd need an oscillator indicator to determine entry and exit points.
When moves above 20 it indicates the beginning of a trend, though it could be an uptrend or a downtrend so remember to verify whether it is an uptrend or a downtrend before you commit to the trade.
When moves above 30 it indicates the start of strong trend !
Once moves above 50 it becomes more probable that the trend is coming to an end and trading ranges developing again.
I added the possibility to add on the chart a 2nd timeframe for trend confirmation.
Please comment in case you would have any recomandation.
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