ADX BTCUSD Analysis & ADX Bitcoin Signals

Developed by J. Welles Wilder

This a momentum indicator used to figure out the momentum of a bitcoin price trend: it is derived from the DMI - Direction Movement Index which has two lines.

+DI - Positive Direction Movement Index

–DI - Negative Direction Movement Index

ADX is calculated by subtracting these 2 values and applying a smoothing function.

ADX Crypto Indicator Analysis - ADX BTCUSD Trading Indicator Analysis

The ADX isn't a directional technical indicator but a measure of the momentum of the bitcoin trend which has got a scale of 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 value of above 20 confirms a buy or sell cryptocurrency signal and reflects a new bitcoin trend is emerging.

Values above 30 signifies a strong trending market.

When ADX trading indicator turns down from above 30, it demonstrates that the present bitcoin cryptocurrency trend is losing force.

ADX combined with DMI Technical Indicator

Since the ADX alone is a directionless indicator it's combined with the DMI index to figure out the direction of bitcoin crypto.

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

DMI

ADX & DMI Index

ADX & DMI Index - ADX Indicator Analysis

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

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 down 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

Exit signal is derived and generated when technical indicator turns down 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 Topics: