In This Chapter
Trading the ADX indicator with the best of them
Using Bollinger Bands like a pro
Keeping things simple with moving averages
Understanding the concept of trend is easy. In its simplest terms, trend is the long-term direction of the market. The trend can be up, down, or sideways. But although the idea is simple, the implementation may be deceptively difficult. Ten traders may eyeball a chart and come up with various answers to what they see the trend of the market to be because each is using a different and subjective criteria.
This is where indicators are helpful. Indicators are mathematical formulas that objectively measure market movement. They’re so precise that they’re programmed into computer formulas and give exact readings so you don’t have to depend on subjective misinterpretation.