That's Wilder's DMI (Directional Movement Indicator) and is standard on any interactive chart. If used, it will get you into a trade way after the fact but I use it to confirm what the trend is on the larger frames.
I don't think I ever recall Buy1Sell2 being condescending to anyone and I've been a lurker for over 10 years. I do appreciate your entries not only for entertainment to help the trading day go by but I find that it helps to reveal different perspectives. Edit: Concinnity, appreciate your posts. BuySell2 as well.
Here is a weekly chart of the Euro/USD from a few years back. Once the trend was defined on this weekly chart, it would have been possible to buy dips on daily, hourly etc and let em ride with a trailing stop I would think.
Trends are generally strongest when the ADX line comes from below and enters the expanding space created. Trend continues until ADX line turns down but can re-ignite without dropping all the way back to below.
Thanks for the chart and the explanation of the Trend indicator you posted. I trade both short term (scalping futures) and Longer holds via Options and Futures on Options -- employing Statistical Arbitrage and Gamma Scalping. Yes, one of my Favorite Trades is: Buy One future and Sell 2 ATM Calls. @Buy1Sell2 -- ET and Baron should be very pleased to have you and posting!
You are saving premium outlay by buying the future but are not limiting the downside as the future could fall out of the sky. By buying an OTM or ATM call instead of the future and selling 2 OTM calls, it is possible to get in with no outlay or maybe even a net credit and thus have no downside risk on the long call in my view. As with all strategies of this type, there is risk that the naked call goes well against you, so a person needs a strategy if market takes off.
Anyone enamored of 4200? --------To be fair, I thought we would get to 4200 from underneath but had no idea it would go 600 pts higher. So, the 4200 call wasn't really good. It is interesting at best that it seems to arrive at 4200 from time to time.