Moving Averages in a Trending Market
If you’re not a fan of the ADX, you can also make use of simple moving averages. Check this out!
Place a 7 period, a 20 period, and a 65 period Simple Moving Average on your chart. Then, wait until the three SMA’s compress together and begin to fan out.
If the 7 period SMA fans out on top of the 20 period SMA, and the 20 SMA on top of the 65 SMA, then price is trending up.