No Nonsense Forex ADX Technical Analysis - No Nonsense ADX Strategy

The ADX indicator is a momentum indicator created by J. Welles Wilder.

ADX indicator is used to measure the strength of forex trends on a scale of 0 - 100; the higher the ADX indicator value the stronger the current Forex trend. It should be noted that while the direction of forex price is important to the ADX indicator calculation, the ADX indicator is not a directional indicator. ADX indicator values above 30 indicate a very strong forex trend, while ADX indicator values below 20 indicate no trend forex market - ranging market.

Forex traders typically use the ADX indicator as a filter combined with other indicators to create a forex trading strategy.

Forex technical analysis ADX indicator levels turning up from below 20 is an early signal of a new forex trend while declining levels turning down from ADX indicator levels above 30 as deterioration of the current forex trend.

ADX indicator should be used as part of a forex trading strategy that includes the +DI and -DI lines. Most Forex platforms integrate the original ADX indicator with the +DI and -DI indicators (DMI Index Indicator) & collectively refer to the whole system as the ADX indicator.

In the forex example below:

ADX indicator is the light green-line

+DI is the blueline(bullish line)

- DI is the red-line(bearish line)

No Nonsense Forex ADX Indicator - No Nonsense Forex ADX Technical Analysis - No Nonsense ADX Forex Strategy

• Bullish Trend - No Nonsense Forex ADX Technical Analysis- when the +DI, blue line is above the -DI, red line
• Bearish Trend - No Nonsense Forex ADX Technical Analysis- when the -DI, red line is above the +DI, blue line

Bullish Signal - No Nonsense Forex ADX Technical Analysis

A bullish forex trading signal is generated when the +DI line is above the -DI line, when the blue line is moving above red line.

To identify a strong bullish forex trading signal forex trader should wait until the ADX Indicator values are above 20, and the blue line is above the red line. This is a bullish forex signal because the DMI Index system identifies the forex trading signal as a buy, while ADX Indicator levels above 20 shows there is a strong upward Forex trend.

Bearish Signal - No Nonsense Forex ADX Technical Analysis

A bearish forex trading signal is generated when the red line is above the blue line that is the -DI line is above the +DI line. A strong sell signal will be generated when this bearish forex trading signal is accompanied by an ADX Indicator value of above 20.

No Nonsense Forex ADX Buy and Sell Signal Indicator - No Nonsense Forex ADX Technical Indicator Described