Open Demo Account trendline 1 is broken and the ADX tops
out and begins to move lower (point B). While the price action has
been extremely volatile around this point, it should be noted that the
ADX over 25 negated the premature crossover signal of MACD as well
as the break of support on trendline 1. At point C, Partnerships With Forex Gen the ADX has fallen back below 25 and this suggests taking another look at the MACD,
which is beginning to diverge bearishly Open Demo Account, as new price highs are not
matched by new MACD highs. A subsequent sharp down move in price
generates another negative crossover on the MACD, and since ADX is
now below 25, a short position is taken at about 1.3060 (point D).
With Forex Gen Broker Following along with trendline 2 now, ForexGen Services MACD is clearly weakening
as prices move lower.
The ADX initially continues to fall indicating the
absence of any trend, but begins to turn up after a failed test of
trendline resistance at point E. The focus remains on the MACD at this
point as the ADX is still below 25. As price declines slow, MACD crosses
upward indicating it is time to exit the position at around 1.2900 at
point F.
ForexGen Institutional Tools Subsequent price action is extremely whippy and the ADX again fails to signal an extended trend, confirming the decision to
exit.
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