Analysis Using ADX (Average Directional Movement Index) in Forex Trading

What is ADX??

Many ask us, is it good for us to be successful in trading if we look at the ideals of a moving trend? Of course our answer is quite simple, you must understand and understand one of the indicators, so that the entry and exit signs can be confirmed properly, what are the indicators? Master ADX!

In this post and practicing forex trading, we will discuss one of the simplest and quite well-known trend indicators, namely the Average Directional Index or ADX marker. Although in practice this marker is lagging or slow in estimating price movements, it is still to be expected and quite efficient when you are used to using it.

The Average Directional Movement Index marker or known as ADX is a marker that belongs to the type of force marker developed by Welles Wilder and is used to measure the strength of a force. This marker consists of one line and refers to the Directional Movement Index which consists of 2 markers namely +DI and -DI markers.

What's special about this ADX marker? What is special about the ADX marker is, it does not attest to the ideal of style but its sturdiness. The main purpose of this marker not only to measure the force of the force is to calculate the next stage of the force and how strong the price momentum is.

Before we continue, we need to know once again that ADX does not prove trend goals.

Method of reading and using ADX in Forex trading.

1.If the ADX line continues to rise until the strength of a trend continues to be large, it is likely that the market will move further in the same direction.

2.Something when the trend's power reaches its peak. When its robustness continues to weaken, it is accompanied by a retrogression of trend goals.

ADX mark:

Crossing line+D as well as- D

When the +D line crosses the D-line from the bottom: Bullish

When the D-line crosses the+D line from the bottom: Bearish

Note: this is only efficient when coupled with an increase in power (an increase in the number of ADX lines).

That's the method and illustration of using ADX in forex analysis. Hopefully useful.

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