Average Directional Index is an indicator which fluctuates between 0 and 100. Readings below 20 indicate a weak trend and readings above 40 indicate a strong trend. ADX does indicates just the strength of the trend, up or down. With ADX there are two lines which are often plotted, that indicate direction. The lines are +DI (positive directional indicator) and -DI (negative … [Read more...]
ADX Indicator : The Concept
The ADX indicator is a tool used to measure the strength of a trend and can be very useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend. A trading range is likely to develop when the trading range is showing a low reading. So one should always avoid stocks with low readings. ADX stands for Average … [Read more...]