D. |
ADX-based stop (breakout entries): For
breakout wins, trail a stop at the point at which the ADX line loses 5
points (Example: If the position was initiated when the ADX was at 42,
and it subsequently trended in your favor to 63 before starting to
flatten out, trail a stop for the issue being trading at the point at
which the ADX drops back to 58.) ADX-based stop (trending exits): If
in an open position in a slow-trending stock and the price action starts
to flatten out, exit the position immediately if the ADX starts to lose
40 because this helps confirm the loss of the trend. |