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My time frame is weeks to months looking at trends. My definition of an
uptrend is higher highs and higher lows once a valid change of trend has
takern place. Opposite for a downtrend. I just uploaded some charts to my
web page using trendlines and some tests to define a change in trend. I'm
attempting to better time buys off of bottoms (stocks) during sector rotation.
The problem with ADX as you pointed out is that by the time ADX regisers a
strong trend, a good part of the move may be over. As a sector bottoms, the
ADX is probably pretty low, since prices are going sideways. For an early
warning, you might try a ratio of ADX today/ ADX avg. for (n) days. A very
low number may be a warning of a change in trend coming.
Let me know if you have suggestions.
Sentiment Mumbo-Jumbo
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