15

MOMENTUM III: INDIVIDUAL INDICATORS

Questions

Subjects to Be Covered

Terminology for the directional movement system

Suitable time frames and interpretation of the ADX

DI interpretation

Calculation of the KST

Interpretation of the KST

Basics of the Special K

Parameter requirements for the parabolic

1. +DI stands for:

A. Positive distance indicator

B. Positive directional movement

C. Directional Indicator

D. None of the above

2. If you know the probabilities favor directional movement increasing, it’s okay:

A. To buy

B. To sell

C. To look at other indicators to see which direction the price trend is likely to move in and then take action

D. To buy calls

3. The following chart features two ADXs. Which one is calculated from the shorter time ...

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