When the ADX goes flat - Part II

Cho Sing Kum
17^th Jun 2003

It's been five months since I wrote the article When the ADX goes flat. At that time I was hoping I would be able to write a follow up to show you what I meant. Some time just past the middle of last month, the ADX had resumed its rise. I waited until the close of last month before I took that as confirmed. Remember I was also looking for an upward cross in the Slow Stochastic at the same time. We were working with monthly chart.

I had expected the ADX to turn up in January based on the upward cross of the Slow Stochastic. This did not happen and the Slow Stochastic wriggled up and then down. At the end of June coinciding with the ADX's rise, it crossed upwards again. This was what I was hoping to show you. See chart below.

Notice also the positions of the Parabolic and the 20-month simple moving average. 

Now the thing that is left to observe whether this setup combination will once again prove profitable.

Let's see how it goes.

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