ADX Breakouts by Ken Calhoun
Breakouts are a popular method to trade with, but how do you differentiate between strong and weak breakouts? Here in this second installment of a new regular column titled “Trading On Momentum” that presents step-by-step techniques for active traders, this professional daytrader demonstrates one method of identifying breakouts that could make a difference.
You can easily find volatile swing trading chart breakouts by using J. Welles Wilder’s average directional index (ADX) whenever you scan for trade entries. Combining the ADX with volume and price-action breakouts can help you locate the strongest breakouts to trade...