ADXplosive "TNT" Setup
The ADXplosive setup (from ADXcellence--Power Trend Strategies) is described as a condition where two timeframes have low ADX (<25). Low ADX represents a range-neutral period, where the bulls and bears are in relative balance, and a breakout may follow. This chart of Block (SQ) recently showed a setup with "three" neutral timeframes (Monthly, Weekly, Daily), thus "TNT" is added to the ADXplosive name.
TNT stands for Triple Neutral Timeframes. That means that the daily chart has two higher timeframes that can add fuel to a potentially explosive move. Currently, the daily ADX is above 25, so we may be seeing the beginning of a move out of a 3-year range pattern.
SQ is now testing the resistance line and the +DMI is above 25, so the current bias is "up." Since there is overhead resistance, this trade may fit a longer-term hold strategy.
The is no guarantee the stock will breakout, and it could breakout in either direction, but this pattern is set up to go higher since the +DMI is in the strong position.
(Note: this is for informational purposes only, no stock recommendation is being made.)