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Home » Technical » How To Trade Average Directional Index (ADX)

How To Trade Average Directional Index (ADX)

The Average Directional Index (ADX), invented by J. Welles Wilder is referred to as an oscillator technical analysis indicator. ADX fluctuates between 0 and 100. Readings below 20 show a weak trend while above 40, show a strong trend.

Indicator readings above 85 are rare and show a very strong up or down trend in the market. Please note: ADX does not give you an indication about the trend (up or down), it gauges the strength of the currency trend.

USD/CHF Average Directional Index (ADX) Daily Chart

Trade Average Directional Index

Type of technical indicator: Oscillator

Forex signals from ADX

There are no signals from the ADX indicator.

Use in combination with other forex technical indicators and tools to trade strong readings above 40.