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The second resistance and support levels are based on the entire width of the previous days trading range. In addition, many traders also reference a third order extension of the support and resistance levels. These formulas are: S3 L 2 x (H P) R3 H.

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When used correctly, it allows us to get into trends early enough (after they are formed) and exit before the trend reverses back into the opposite direction. ADX period setting The standard or default setting for the ADX indicator is 14 periods. This is the.

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