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ADX indicator is an indicator used to measure the strength of a trend, in the ADX does not show any ovebought or oversold, did not like the RSI and Stocastic, which is indicative of an increase in ADX the stronger the trend, be it bullish or bearish.
ADX indicator comprising:
ADX stripe (yellow line)
The line D+ (Blue line)
Line of D- (red line)
The figure below is a chart GBP/USD H1 time frame.
Uses ADX line itself is:
ADX indicator comprising:
ADX stripe (yellow line)
The line D+ (Blue line)
Line of D- (red line)
The figure below is a chart GBP/USD H1 time frame.
Uses ADX line itself is:
- The lines are in the area ADX 0-20 = do not take a position, because prices are still in the stage of consolidation.
- ADX are in the line of 20-30 = Get ready to take a position, as prices begin to move in this area either Uptren or downtren.
- The lines are in the ADX trend going 30-40 = moderate tonic, both uptren and Downtren.
- The lines are in the ADX trend is 40-100 = STRONG, will soon come to an end (position ADX line / white circle in the image above).
While the function of the line D- and D+ are:
D+ cut from below D-, it's means signal Uptrend
D- cut from belowD +, it's means signal Downtrend
Now look at the picture below: GBP/USD time frame H1 and 15 period ADX
Note the candle that I circled, it indicates prices continue to go down and look at the ADX indicator that I circled and also intersected the D-cut D, where prices continue to move down from the top of the circle candle to the bottom and end up at the bottom dilingkaran candle , there was evident usefulness of the ADX line itself, at the very bottom of the candle circle also see ADX line that I circled near the letter X has been depleted due to the bearish trend ADX line also has been in the area of 40-100.
