What Is ADX Indicator?
It is an indicator that is made up of a single line with value ranging from 0 to 100. You may think that it looks like an oscillator but it is uni-directional. Unlike the oscillator which tells you that the market is moving up when it is pointing up and the market is moving down when it is pointing down, the ADX is only meaningful when it is pointing up and that’s why it is uni-directional. If you take a close look at the picture below, you will find that the adx will point up when you are in a good uptrend as well as a downtrend. How to Use the ADX Indicator? I personally use it to tell whether the market is trending or ranging. As stated in the earlier part of this post, the ADX has a range value from 0 to 100. When it is moving below the 25 level, it is telling you that the strength of the market is very weak. What usually happens at this time is that the market is in consolidation and will most probably be moving in a range. When the indicator moves above the 25 level, it is tellin
