No Nonsense ADX Technical Analysis

The ADX indicator is a momentum indicator created by J. Welles Wilder.

ADX indicator is used to measure the strength of trends on a scale of 0 - 100; the higher the ADX indicator value the stronger the current trend. It should be noted that while the direction of price is important to the ADX indicator calculation, the ADX indicator is not a directional indicator. ADX indicator values above 30 indicate a very strong trend, while ADX indicator values below 20 indicate no trend market - ranging market.

Traders typically use the ADX indicator as a filter combined with other indicators to create a strategy.

Indices technical analysis ADX indicator levels turning up from below 20 is an early signal of a new trend while declining levels turning down from ADX indicator levels above 30 as deterioration of the current trend.

ADX indicator should be used as part of a strategy that includes the +DI and -DI lines. Most platforms integrate the original ADX indicator with the +DI and -DI indicators (DMI Indicator) & collectively refer to the whole system as the ADX indicator.

In the example described and illustrated below:

ADX indicator is the light green-line

+DI is the blueline(bullish line)

- DI is the red-line(bearish line)

No Nonsense ADX Stock Indicator - No Nonsense ADX Analysis - No Nonsense ADX Indices Strategy

• Bullish Trend - No Nonsense ADX Technical Analysis- when the +DI, blue line is above the -DI, red line
• Bearish Trend - No Nonsense ADX Technical Analysis- when the -DI, red line is above the +DI, blue line

Bullish Trading Signal

A bullish signal is generated when +DI line is above -DI line, when blue line is moving above red line.

To identify a strong bullish stock signal indices trader should wait until the ADX Indices Indicator values are above 20, and the blue line is above the red line. This is a bullish indices signal because the DMI Index system identifies the signal as a buy, while ADX Indices Indicator levels above 20 shows there is a strong upward Indices trend.

Bearish Trade Signal

A bearish stock signal is generated when the red line is above the blue line that is the -DI line is above the +DI line. A strong sell signal will be generated when this bearish stock signal is accompanied by an ADX Indices Indicator value of above 20.

No Nonsense ADX Buy and Sell Indices Signal Indicator - No Nonsense ADX Technical Indices Indicator Analysis