ADX BTCUSD Analysis & ADX Bitcoin Signals

Developed & Created by J. Welles Wilder

This momentum tool measures Bitcoin trend strength. It comes from the DMI, or Directional Movement Index. That has two main lines.

+DI - Positive Direction Movement Index

–DI - Negative Direction Movement Index

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

ADX Crypto Indicator Analysis - ADX BTCUSD Trading Indicator Analysis

The ADX doesn't show which way the price is going, but it does show how strong the bitcoin trend is, on a scale from 0 to 100.

The higher the technical indicator reading the stronger the trend.

A value of below 20 reflects that the btcusd market is not trending but heading in a range.

A reading over 20 confirms a buy or sell signal for cryptocurrency. It means a new bitcoin trend starts.

Values above 30 signifies a strong trending market.

ADX drops below 30 from high. This means the bitcoin trend weakens now.

ADX combined with DMI Technical Indicator

Because the ADX functions purely as a non-directional technical indicator, it is typically paired with the DMI index to accurately pinpoint the trajectory of the cryptocurrency, specifically Bitcoin.

ADX BTCUSD Trading Indicator Analysis - ADX BTCUSD Indicator - ADX Technical BTCUSD Indicator

DMI

ADX & DMI Index

ADX & DMI Index - ADX Technical Indicator Analysis

Pair ADX with DMI to see bitcoin trend direction. Then use it to gauge the strength of that trend.

BTCUSD CryptoCurrency Analysis and Generating Signals

Buy Signal

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

The Exit signal is derived and generated when indicator turns downward from above 30.

ADX - ADX BTCUSD Indicator Analysis - ADX Indicator

Buy Crypto Signal

Sell Trading Signal

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

An exit signal is produced when the technical indicator declines from above 30.

ADX Indicator - ADX Technical Crypto Indicator - How Do I Set ADX Bitcoin Indicator in Chart on Platform Software?

Sell Crypto Signal

Study More Tutorials: