The average directional index (ADX) is a trend indicator use...
The average directional index (ADX) is a trend indicator used to measure the strength and momentum of a trend. When the ADX is above 40, the trend is considered to have a lot of directional strength, either up or down, depending on the direction the price is moving.
When the ADX indicator is below 20, the trend is considered to be weak or non-trending.
The ADX is the main line on the indicator, usually colored black. There are two additional lines that can be optionally shown. These are DI+ and DI-. These lines are often colored red and green, respectively. All three lines work together to show the direction of the trend as well as the momentum of the trend.
ADX above 20 and DI+ above DI-: That's an uptrend.
ADX above 20 and DI- above DI+: That's a downtrend.
ADX below 20 is a weak trend or ranging period, often associated with the DI- and DI+ rapidly crisscrossing each other.
When the ADX indicator is below 20, the trend is considered to be weak or non-trending.
The ADX is the main line on the indicator, usually colored black. There are two additional lines that can be optionally shown. These are DI+ and DI-. These lines are often colored red and green, respectively. All three lines work together to show the direction of the trend as well as the momentum of the trend.
ADX above 20 and DI+ above DI-: That's an uptrend.
ADX above 20 and DI- above DI+: That's a downtrend.
ADX below 20 is a weak trend or ranging period, often associated with the DI- and DI+ rapidly crisscrossing each other.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
