A Reversal

Reversals can be a trick, but can also give a treat. Take some time to study this if you are learning to trade futures. In ADXcellence, Dr Schaap created the ADXquisite strategy. In the book it is shown on a daily chart. This is a one minute chart - futures contracts expire so the action is often on lower time frames. The dotted lines show the higher high in price and lower high of ADX/ DMI - this is divergence. The red arrows show where price breaks support and the -DMI makes a cross and hold. A reversal is a change of direction - ADX/DMI helps us get in for the profits. Indicators will help us have the best strategy, but always keep your eye on price for the best profit.