How To Trade Average Directional Index (ADX)
January 29 | Technical | No Comments|
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
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.