Dear Friends,
If the trend is your friend, then you should definitely use the ADX Indicator.
Added ADX Bullish and Bearish Patterns.
#ADX
Wilder suggests that a strong trend is present when ADX is above 25 and no trend is present when below 20.
When the ADX turns down from high values, then the trend may be ending
If the ADX is declining, it could be an indication that the market is becoming less directional
#adx
ADX is non-directional and quantifies trend strength by rising in both uptrends and downtrends.
When the +DMI is above the -DMI, prices are moving up, and ADX measures the strength of the uptrend.
When the -DMI is above the +DMI, prices are moving down, and ADX measures the strength of the downtrend.
ADX readings above 25 to suggest that the trend is strong enough for trend-trading strategies. Conversely, when ADX is below 25, many will avoid trend-trading strategies.
When ADX is below 25, the trend is weak. When ADX is above 25 and rising, the trend is strong. When ADX is above 25 and falling, the trend is less strong.
The best profits come from trading the strongest trends and avoiding range conditions. ADX not only identifies trending conditions, it helps the trader find the strongest trends to trade.
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