Things are crazy here, so I won’t be making a forex training video tonight. Instead, here’s some great, useful information for if you use the ADX (Average Directional Index).

ADX Basics: Definitions of move and trend, and the 4 Main ADX Principles

In the ADX we can see that we have varying degrees of strength and weakness. Those varying degrees are given below, and are important later on because when certain conditions are not met, we KNOW what has to happen. Every single time, but not always to a new extreme.

Definition of move on the ADX:

When the market makes a move and the ADX changes direction. (i.e. from moving up to now moving down, or from moving down to now moving up. A flat ADX is not a change in direction.)

1. When the market makes a move and the ADX increases, that move is a strong move on that chart at that time.

2. When the market makes a move and the ADX decreases, that move is a weak move on that chart at that time.

Definition of trend on the ADX:

After a strong move (as above, or trend of any kind) the market moves in the other direction and the ADX decreases, THEN the market moves farther in the direction of the previously strong move (or trend of any kind), we now have a trend on that chart at that time.

3. In a trend, when the ADX moves higher than it was at its previous high peak, we have a strong trend on that chart at that time.

4. In a trend, when the ADX is not now higher than it was at its previous high peak, we have a weak trend on that chart at that time.

The idea behind the definition of trend…

Is that we have strength in any form (a weak trend is still stronger than a weak move), then the ADX decreases, and after that decrease, the market then moves farther than it did before in the previous direction of strength. [Please note in the above that we have moves and trends. Also note that we have strong move, weak move, strong trend, weak trend.]

Definition: End of a Trend

A trend is over on that chart when the ADX tracks strength in the direction opposite the trend. Once the ADX says a trend is over on that chart, more strength on that chart in the same direction is now a move until the conditions are again met for it to be a trend on that chart at that time.

If the ADX does not fall between moves in the market, and still tracks strength in a direction then keeps moving in that direction, it is still a move.

The ADX must fall, even just a little bit, before again moving up as the market moves farther that it previously did in order to have a trend. Once the market moves farther, we have either a strong trend or a weak trend.

In sequence from weakest to strongest: weak move, strong move, weak trend, strong trend. In defining trend, anything other than a weak or very weak move counts as previous strength.

Only compare ADX peaks that are tracking the same direction of movement or trend strength.

ADX Principles Shown on a Chart

Let us take a look at the ADX (black line indicator below) regarding strong and weak moves:

It is possible to have a move be weak, then turn strong. It is possible to have a move be strong then turn weak. It is possible to have a weak trend turn to a strong trend. It is possible to have a strong trend turn to a weak trend, or even a weak move. See the coming video(s) on the ADX for more explanation.

If you have any questions or comments, please leave them. I’ll get back to answer them asap. Since part of my goal here is for you to understand what I’m teaching here, if there is anything you don’t “get”, just ask.

Have a truly phenomenal trading day (and weekend!) P)

In trading the Forex markets, things can get crazy, even chaotic. A basic trading model helps you be able to think during times of chaos. Now I’m about to give you the basic model for the complete and profitable trading system you’re starting to learn here. If you’re new, I highly suggest starting at the first post and moving forward. That way you can get it step by step and understand everything as it is being presented.

The purpose of having a basic model as the foundation for a trading system is to give you a piece of information that never changes. The Forex markets change crazy fast sometimes.

The basic trading model is NOT how to trade - it is merely a herculean foundation that can be built upon. Everything else ties directly to this model, and how to enhance it so your trading is more profitable.

There are several things that the basic model does:

1. Says when to enter.
2. Says when to exit.
3. Says when to move your stops.
4. Says when to take profits.
5. Says when to take a loss. (Even more.)

The previous peak takeout basic model says, “when a previous peak in the market’s price action is exceeded, take some action.”

You’ll really enjoy putting together the basic model with the divergences you learned earlier because they really go hand in hand nicely. Know the basic model well because it can help save you a lot of money when things start going crazy and you’re in a position.

Remember that this is just a very small part of a MUCH larger trading system. Chances are great that you have never actually seen a complete trading system to trade Forex, futures, stocks, anything.

If you want to be a truly successful trader over the long haul, you should manage your complete trading system. Not “be a trader”. Big difference between “being a trader” and “being a trading system manager”. Traders lose money. Trading system managers profit consistently year after year.

Again, I welcome all comments and questions that you have about anything I’ve covered here. While I try to make the information complete, I forget that you don’t already know this, and I don’t know what you don’t know. So please leave me questions.

Oh, and if you want to be notified of updates to this blog (pretty much daily), sign up to get notified by email when the updates are posted. Plus, I will be making a really cool membership area for everyone who signs up to be notified - as long as you’re still subscribing, that is. In the membership area we’ll take everything to a whole new level, introduce a lot more profit-enhancing info, form trading groups and on and on.

And you can tell me what you want. Right down there below, just leave me a comment. I’ll read it as soon as I recieve it and take action to better serve you. Have a truly phenomenal day (night, whatever), and the best of trading to you - or the best of learning.

Welcome to Domination Trading! This site will not only teach you about being a great currency trader, but if you’re bright enough, pretty much how to dominate the Forex market of your choice.

What is planned for this site is nothing short of ground-breaking, and could change the face of Forex trading for a long time to come. The principles that will be taught by me (and hopefully others will contribute, too) are the foundation of all successful trading, and will be built upon into anything you want for yourself.

With all of the so-called “trading systems” out there, and I’ve personally bought, studied and tested over 250 of them in the past 14 years, only two were actually complete trading systems. Two out of over 250 - which is less than 1%. Well, that isn’t right.

The basic philosophy, the foundational philosophy, to the forex trading systems coming, all start with basic risk, money and profit management. That IS the foundation of all great trading. And the discipline to take the required actions when told to by the system that you’re using.

That boils down to trading system management. A lot more of that is forthcoming. I beg you to ask me questions so I can make you videos, write more content that you want to read, and direct you to becoming the best trader you can possibly become. There’s a lot involved. There’s a lot to learn. There’s a lot to know about currency trading in the Forex markets.

Let’s get a good start tomorrow. So register, comment, and tell people about this site… More is on the way.