Looks like this gold push could be short-lived

I want to start using the ADX in my trading a litle more. As I am setting this up for my Gold chart, I noticed something very interesting about it. It indicates a lack of interest in the current up move (a negative divergence), similar to the way a MACD works. For this particular picture I recommend actually clicking on it for the closeup. It gives you a much better visual:



We have the RSI above 50 which is bullish, but...do you see the trendline? I think it is important to note that you can have all the things in the world pointing you towards a possible long or short position...but if there is no uumph...no conviction behind it...you will probably just move sideways or the opposite way you wanted originally. Then it will be anybody's guess where you go from there. This is what the ADX will do for you.

Now I'm pretty sure I've never read anywhere where you are supposed to use the ADX in this manner, but it sure makes sense. Let's see what happens to Gold in the first few hours.