How To Trade Average Directional Index (ADX)

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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.

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