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Name: Average Directional Index (ADX)
Favorite Strategy: predictive
Default Settings: 14, 14
Gotcha: produces false signal when…
What does ADX do.
The ADX value is high when the market is trending (higher or lower) and low when the market is in congestion. As such, the indicator attempts to define the current market’s trendiness over the past n-periods into one simple value. ADX is not indicative of the direction of a trend, as the indicator itself trends up regardless of the market trending strongly up or strongly down.
What is ADX made out of.
How to read ADX.
I do not trade anymore based on signals from most indicators. Want to know what I am up to?
Adopt ADX to different time frames and/or strategies.
What ADX is not.