Can you please cite a reference where ADX is used to determine if a stock is bullish or bearish? My understanding is it is simply a measure of whether a stock is in an expansion or consolidation phase. It gives no indication of future direction to my knowledge - just a measure of the current trend.
If you are able to determine the direction of a trend. As well as the strength then...
For example, if something is in an uptrend and you know that trend is strong. That's bullish. Converse situations represent a bearish scenario.
I am not quite sure I understand what there is to be unclear of in this situation on your end.
What's confusing me is, if you know how to use the ADX and what bullish and bearish refer to within the context they're being used then there really shouldn't be anything to be confused about in the first place?
If I wasn't able to answer your question please rephrase.
Jakovasaurus
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@Slyx737 The ADX is a lagging indicator based on its calculation using the previous 14 periods. Therefore, calling it "bullish" because a trend is currently strong is incorrect in my opinion. I take issue with you saying it's "bullish". As they say, the trend is your friend - until it's not, as evidenced by the strong pullback with support around the EMA 20. Note also in my original question to you, that I stated that it gives NO indication of future direction. Moreover, I disagree with your use of RSI in a trending stock. RSI is better used in stocks that are in a consolidation phase to determine entry and exit points.
We just have a difference in opinion of how indicators should be read. Interpretations change based on your reference.
Jakovasaurus
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@Slyx737, Also, I asked you for a reference. Not your explanation / defensive response. So if you link me to investopedia.....
Jakovasaurus
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@Slyx737, Here, I'll do for you what you couldn't do for me.
My reference is "The Complete Trading Course" by Corey Rosenbloom, page 74.
Or, perhaps reviewing some topics on Thomas Bukowski's site / books can help you too.
SpektreSignal
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@Jakovasaurus, I dunno I have 71% accuracy across all of my forecasts which is over 500 this month alone across traditional and crypto markets as well as rank in the top 200 among over 106,000 analysts. I appreciate the offer. Reading someone else's work and regurgitating their information doesn't make you good, skilled, or even knowledgeable. All you've done is proven you're cocky and egotistical because you read some books. Well done, sir.
SpektreSignal
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@Slyx737, I can provide emipircal results of my forecasts if you like. Rather than point at the work of other people and pretend to be knowledgable. ;)