Identifying Retracements

ADX Magenta Peaks

The THD charting indicators gives traders an edge by identifying overbought and oversold ares, low risk entry points, and volume divergence.

The ADX Magenta Peak identifies when price will begin the pullback to the ATR.  By knowing ahead of time where price will go, traders have an advantage in capturing profits during a pullback.

Identifying when not to enter a trend is just as important as knowing when to enter.  The ADX identifies when markets are overbought or oversold reducing potential losing trades.  Additionally, the ADX identifies the most likely point of retracement AND where price is more than likely to pullback to (ATR which is the “+” sign on the chart above). By knowing where price will go, traders can identify if there is substantial profit potential or not.  Then they can zero down in time for a low risk entry point.

Also, one of the biggest issues in Options trading is knowing where price is more than likely going and how quickly it will get there.  The ADX identifies when the pullback will begin and where it is going.  Then, depending on the timeframe, the trader can identify which option contract is the best to trade.