Trade Average Directional Index (ADX)

By Posted on
Change Languange:

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.

Gravatar Image
Professor FX - https://www.prof-fx.com
Prof FX is the world’s leading forex education website, providing investors all the required tools to become a top class forex trader. The Prof-FX.com team offers global investors an array of resources, including financial news by the minute, forex brokers reviews, fundamental analysis, technical analysis, forex tools, metatrader indicators and much more.

Leave a Reply

Your email address will not be published. Required fields are marked *

Mastering Hammer Candlestick Patterns

Mastering Hammer Candlestick Patterns

Key Concepts for Trading with the Hammer Candlestick Pattern The hammer candlestick pattern is one of the most recognizable reversal

Government Intervention And Economic Calendar in Forex

Government Intervention And Economic Calendar in Forex

Why do we care if the country that issued the currency has an over-involved government that likes to intervene in

Economic News Calendar Announcement

Economic News Calendar Announcement Drive Fundamental Outlooks

Forex traders keep a close watch on the economic calendar because they know that economic announcements provide the data that analysts and

How Use William’s Alligator

How Use William’s Alligator in Your Forex Strategy

In the previous articles, we have covered Moving averages and Trend lines. The ‘Alligator’ Indicator covered in this blog is a mix

Gross Domestic Product

Gross Domestic Product (GDP) – Forex Calendar

Economic growth announcements report on how well a coun­try’s economy is doing. Economies can move in one of three directions:

How to Trade a Bullish Flag Pattern in Forex

How to Trade a Bullish Flag Pattern in Forex

In forex trading, chart patterns play an important role in helping traders time entries, manage risk, and project profit targets.

Understanding Forex Rollover Rates

Understanding Forex Rollover Rates: How Overnight Interest Impacts Your Trades

In forex trading, not all profits and losses come solely from price movements. One often overlooked but highly important concept

Make Money in Forex by Avoiding These Psychological Risks

Make Money in Forex by Avoiding These Psychological Risks

Aside from the risk of losing money, forex trading also involves several psychological risks. These risks are often overlooked by