Trade Forex Trading

Introducing Broker - Introducing Traders to Forex Brokers

Average Directional Movement Index - ADX Forex Technical Analysis and ADX Forex Trading Signals

Developed by J. Welles Wilder

 

This a momentum indicator used to determine the strength of a price trend; it is derived from the DMI – Directional Movement Index which has two lines.

 

+DI - Positive Directional Movement Index

–DI - Negative Directional Movement Index

 

ADX is calculated by subtracting these two values and applying a smoothing function.

Average Directional Movement Index (ADX)

 

 

The ADX is not a directional indicator but a measure of the strength of the trend which has a scale of Zero  to 100.

 

The higher the indicator value the stronger the trend.

 

A value of below 20 indicates that the market is not trending but moving in a range.

 

A value of above 20 confirms a buy or sell signal and indicates a new trend is emerging.

 

Values above 30 signifies a strong trending market.

 

When ADX turns down from above 30, it signifies that the current trend is losing momentum.

 

 

ADX combined with DMI - Directional Movement Index

 

Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of the currency pair.

ADX indicator combined with DMI- Directional Movement Index

DMI

 

 

ADX and DMI Index

ADX indicator and DMI Index

 

When the ADX is combined with DMI index a trader can determine the direction of the trend and then use the this indicator to determine the momentum of the prevailing trend direction.

 

Regulated Forex Broker

Takes 4 to 6 weeks to open an account if you don't follow the correct procedure;

Follow the correct procedure and open your account in 5 minutes, Open Early: Read The Article "Account Opening Procedure"

Risk Appetite Market Sentiment: Risk Appetite Trading in the Forex Market

Eurozone Market Sentiment: Eurozone Economic Growth Gains Momentum Fueling Risk Appetite Trading in Forex

If you are not going to open an account, what is the use of learning Forex tutorials on this website: Open an Account First

185 XM Accounts Successfully Opened through TradeForexTrading, Traders Accounts Presence in 54 countries, Over 100,000 trades Executed: Be Part of Trade Forex Trading Success - Open an Account Here and Help Us get to 1,000 XM Accounts

 

Forex Technical Analysis and Generating Forex Trading Signals


Buy Signal

A buy signal is generated when the +DI is above –DI, and the ADX is above 20

 

The Exit signal is generated when the indicator turns down from above 30.

Technical Analysis of ADX indicator- Buy Signal

Buy Signal

 

 

Sell Signal

A short signal is generated when the –DI is above +DI, and the ADX is above 20

 

The Exit signal is generated when the indicator turns down from above 30.

Technical Analysis of ADX indicator- Sell Signal

Sell Signal

Always click an advertisement after reading an article (give and take & let us help each other, don't also forget to tell others about us the same way others told you about us);

Don't Miss opportunity to trade EURUSD Upward Parabolic Forex Trend;

Parabolic Forex Trend: Momentum and Parabolic Forex Trends - Different Type of Market Technical Analysis

185 XM Accounts Successfully Opened through TradeForexTrading, Traders Accounts Presence in 54 countries, Over 100,000 trades Executed: Be Part of Trade Forex Trading Success - Open an Account Here and Help Us get to 1,000 XM Accounts

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

XM Account Holders Hungary Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

XM Forex Broker Regulation Licenses

How a Real Forex Account Looks Like

How A Real Forex Trading Account Looks Like

Up To $6.67 Dollars Bonus for Every Lot Traded

Loyalty Bonus Points - Up To $6.67 Dollars Bonus For Every Lot Traded

Forex Trading Accounts Members Area - Withdraw and Deposit Options

Real Forex Trading Account Withdraw and Deposit Options

XMP Forex Loyalty Bonus Program

Forex Loyalty Bonus Program

Silver and Gold Online Trading

XM Rally Car

Regulated Broker

 

Open Forex Account

Open Demo Account
Open Real Account

Forex Broker Rankings

Up To $5K Bonus

Forex Account Opening Bonus