Is ADX a Leading or Lagging Indicator?

Is ADX Indicator a Leading or Lagging Indicator?

ADX indicator is a lagging technical indicator because ADX technical indicator is used to confirm the trend after the trend has already formed.

ADX indicator is used to confirm an upward trend or a downward metal trend.

ADX values of above 20 are used to confirm a trend & ADX values of above 30 signals a strong trend either upward or downward.

Traders combine the ADX technical indicator with DMI technical indicator of +DI & -DI - this DMI index indicator is used to show the direction of the trend.

Upward Trend

When the +DI is above -DI this indicators an upwards trend

Downwards Trend

When the -DI is above +DI this indicators a downwards trend

After determining the trend of the market the ADX technical indicator will then be used to confirm the trend once the ADX indicator value goes above 20.

Once a trend is formed the ADX technical indicator will keep going up as long as trend keeps gaining momentum.

ADX indicator value should remain above 20 & this is a signal that the current trend is holding.

Once the ADX values go below 20 - this may be interpreted as a signal that the current trend is losing momentum & the current metals might reverse if the ADX indicator value remain below 20.

ADX indicator can also be combined with other buy & sell indicators such as RSI and MACD - and signals generated by the ADX indicator can be confirmed using these additional indicators.

Is ADX a Leading or Lagging Indicator? - Is ADX a Leading or Lagging Metal Trading Indicator? Is ADX Indicator a Leading or Lagging Indicator