ADX Power in trading

[fadly fahmi]

The Average Directional Index (ADX) is an indicator that is well known as a tool for measuring trend strength. ADX was popularized in the 70-80s by Welles Wilder. When combined with DI+ and DI-, ADX can also generate BUY or SELL signals.

ADX translation

The purpose of ADX is to show whether the market is trending or is in a trending area. So, the first thing we must remember is, DIRECTION should not be translated as BUY or SELL, but DIRECTION determines the STRENGTH OF TREND. Increasing ADX = STRONG UPTREND and increasing ADX = STRONG DOWNTREND.

ADX < 20 : Non Trending Market
ADX > 20 and ADX < 40 : There is a trend that is moving. BUY or SELL determine with your indi, but don't use indi Oscillator (such as RSI)
ADX > 40 : Strong trend
ADX > 50 : Trend Extreme

 

[John Miller]

Uncover the inside mystery of the market. I know uncertainty and losses fuel your fear but you shouldn’t shelter your fear at any cost.When a trader has enough knowledge of trading, he or she doesn’t fear trading any more.

 

[Charles Agustin]

Newbies can’t derive profit from the market moderately just because they don’t have sufficient knowledge. Market’s direction should be guessed to trade in the right trading range.

 

[Fin_Trader]

Yes, the ADX indicator can be an effective tool for determining the strength of a trend and making decisions about entering and exiting trades. However, it is best used in combination with other indicators and analysis methods for more accurate signals, as this indicator is lagging.