Understand trend.....

and then you know everything. This is XLE SPDR-Energy ETF. Notice that the rectangle pattern was a change of trend, not a reversal. Dr. Schaap shows that trends are more likely to continue than reverse. Count on it and profit from it. Now let's look at the confirmation we get from ADX. Strong trend for the price ascension cycle. The change of trend is where ADX<25, and then sideways. In this case the change of trend led to a continuation, +DMI never loses dominance. Dr. Schaap teaches this in the book ADXcellence.