Looking at the long-term picture, it looks as if the dollar could be in for a period of weakness. The Supertrend indicator on the daily chart of the GBP/USD chart has just turned green, which is very bullish. It's been red, and therefore in a bearish trend since March 19, but has finally turned positive. This is good news for the pound and bad news for the dollar.

It's a similar story on the other major pairs.  More on The Dollar Is Looking Weak

It was another excellent trading week this week with 2 winning trades out of 2. One was a small winner and the other one was much larger.

The first trade, the small winning trade, was on the EUR/USD pair on Monday morning. I was looking for a downwards EMA crossover on the 4 hour chart, as per the daily trend, and it duly arrived so I went short on a pullback at  More on Weekly Trading Update - June 23-27

The ADX and the directional movement indicators are both very useful indicators for indicating when a new trend is about to start, and when a strong trend is petering out.

I've grouped the two indicators together because on certain charting software, such as the one I use, you can plot them both on the directional movement chart, which is why I personally see them both as one indicator.

So how can you use these indicators?

More on The ADX And Directional Movement Technical Indicators