Hey Everyone!
Here I will apply something known as Average Directional Index (ADX).
As we know, the ADX line indicates the strength of underlying trend, be it upwards or downwards. It is composed of two other lines, +DI(green) and the -DI(red) line.
It indicates, how strong or weak the buyers or sellers are.
Few traders use this to understand the reversal of a previous trend and the start of a new.
After 28th June, we have seen the ADX line changing its course after being above both the DI lines and fell below 40. This indicates that the previous trend(in PNB's case it was the downtrend) is at an end.
Personal prediction says that the ADX line will soon move above 20 and the uptrend shall start. But general idea is to initiate the trade after it crosses 20.
We have to understand one more point, that a longer time under 20 means the greater signification of the signal(buy or sell).
Another thing which can be seen here is the DI line crossover. here the +DI is above the -DI which indicates the the buyers are taking over the market.
This is my idea about the upcoming movements of PNB.
Cheers! Happy Trading!
Here I will apply something known as Average Directional Index (ADX).
As we know, the ADX line indicates the strength of underlying trend, be it upwards or downwards. It is composed of two other lines, +DI(green) and the -DI(red) line.
It indicates, how strong or weak the buyers or sellers are.
Few traders use this to understand the reversal of a previous trend and the start of a new.
After 28th June, we have seen the ADX line changing its course after being above both the DI lines and fell below 40. This indicates that the previous trend(in PNB's case it was the downtrend) is at an end.
Personal prediction says that the ADX line will soon move above 20 and the uptrend shall start. But general idea is to initiate the trade after it crosses 20.
We have to understand one more point, that a longer time under 20 means the greater signification of the signal(buy or sell).
Another thing which can be seen here is the DI line crossover. here the +DI is above the -DI which indicates the the buyers are taking over the market.
This is my idea about the upcoming movements of PNB.
Cheers! Happy Trading!
