The indicator ADX (Average Directional Index) is a statistical tool used to measure the strength or momentum of a trend.
The ADX indicator is used in the FX not to determine the direction of a trend, but to determine the intensity; in other words, the ADX indicator is used to determine if the market is in a trend phase or during sideways market.
ADX: basic lines
The Average Directional Index is an oscillator which can take values between 0 and 100:
- Above the line 50: the oscillator ADX indicates a phase of strong trend
- Below the line 20: the oscillator ADX indicates a weak intensity of trend and, therefore, congestion in the market (stage side).
No comments:
Post a Comment