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Welcome to My Trading Room, Volume III by Jacques Magliolo

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CHAPTER 9

Timing Trades

No man should receive a dollar unless that dollar has been fairly earned.

—Theodore Roosevelt (1858–1919)U.S. President

Strategy to Professional Status: Part IV—Phase 4

Aim: The final step is to understand that profits are higher when you time your trades. There are three forms of timing.

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Three Steps to Timing

Determine Strength Of A Share

The easiest indicator to determine current strength is the Average Directional Index (ADX), which is easy to use, as it is an oscillator that fluctuates between 0 and 100.

If the reading is less than 20, signals are that the trend is weak.

If the reading is greater than 50, it ...

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