No Nonsense ADX Analysis
The ADX indicator is a momentum indicator developed by J. Welles Wilder.
ADX indicator is used to measure the strength of trends on a scale of 0 - 100; the higher the ADX indicator value the stronger the current trend. It should be noted that while the direction of price is important to the ADX indicator calculation, the ADX indicator isn't a directional technical indicator. ADX trading indicator readings above 30 indicate a very strong trend, while ADX indicator values below 20 indicate no trend gold market - ranging market.
Traders typically use the ADX technical indicator as a filter combined with other indicators to create a strategy.
Technical analysis ADX indicator levels turning up from below 20 is an early signal of a new trend while declining levels turning down from ADX indicator levels above 30 as deterioration of the current trend.
ADX technical indicator should be used as part of a strategy that includes the +DI and -DI lines. Most platforms integrate the original ADX indicator with the +DI and -DI indicators (DMI Index Indicator) & collectively refer to the whole system as the ADX trading indicator.
In the example depicted and explained below:
ADX indicator is the light green-line
+DI is the blueline(bullish line)
- DI is the red-line(bearish line)
No Nonsense ADX Indicator - No Nonsense ADX Trading Analysis - No Nonsense ADX Gold Strategy
- Bullish Trend - No Nonsense ADX Technical Analysis- when the +DI, blue line is above the -DI, red line
- Bearish Trend - No Nonsense ADX Technical Analysis- when the -DI, red line is above the +DI, blue line
Bullish Signal
A bullish trading signal gets generated when +DI line is above the -DI line, when the blue colour line is moving above the red color line.
To identify a strong bullish signal gold trader should wait until the ADX Indicator values are above 20, & the blue line is above the red line. This is a bullish trading signal because the DMI Index system identifies the signal as a buy, while ADX Indicator levels above 20 shows there is a strong upward Gold trend.
Bearish Signal
A bearish trading signal gets generated when the red line is above the blue line that's the -DI line is above the +DI line. A strong sell trading signal will be generated when this bearish trading signal is accompanied by an ADX Trading Indicator value of above 20.
No Nonsense ADX Buy and Sell Signal Indicator - No Nonsense ADX Technical Indicator Described
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