Use the 10X Bars as a way to quickly understand trend quality and strength.
The 10x Bars Indicator is used as a way to quickly understand the trend quality and strength based on a more complex underlying calculation of the ADX and DMI. The 10X Bars takes the calculation that we would have to normally had as a separate set of indicators and puts that information directly on your charts so the decision-making becomes simple.
The 10X Bars works as a nice complement to the Squeeze as they can serve as confirmation to stay in a trending chart or as an early sign to GTFO (Get The Funds Out).
Combining the information from 10X Bars with volume further strengthens the signal because, as John Carter says, “Momentum + volume is magic.”
How do we use it?
- The 10X bars will plot green, yellow, or red based on the underlying calculation of the ADX and DMI indicators.
- Green bars indicate conviction and trend to the upside.
- Red bars indicate conviction and trend to the downside.
- Yellow bars indicate no strong directional conviction.
- Bars that show a dot indicate 30% above average volume on that timeframe, indicating stronger conviction to the trend.
- For yellow bars, we want to either avoid those setups or trade them in a non-directional manner until directional conviction is established.
- We want to trade in the direction of the 10X Bars as that gives us the best probability of success in a trade.
About John F. Carter
CEO & Founder of Simpler Trading
John started Simpler because he wanted to create a community of traders, who educate others simply because they care about other people’s success. His setups, market knowledge, and guidance to continually improve yourself as a trader are invaluable.
John is the trading expert everyone turns too when the markets go awry (as they often do), and many of our traders have taken ideas and strategies from him and morphed them into their own strategies. He’s truly one of the best with a level of charisma that draws people in, which has transformed him into the famous trader he is today.