How To Use The ADX Indicator

The ADX indicator is a popular trend indicator and it provides information about momentum and trend strength.
As you will probably know, the ADX indicator comes with 3 lines: the general ADX line (the black line in our examples) and the two DI lines (green and red lines). We will first look at the ADX line.
Essentially, the ADX line measures trend strength and a rising ADX means that the trend is gaining strength, a falling ADX shows a trend that is losing momentum or reversing and a flat ADX shows a sideways range.
What is also important to know is that the ADX is non-directional which means that it does not give any information about the direction of the trend. When the ADX goes up, all it means is that the trend is gaining strength - this can then signal both a bullish or bearish trend.
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#forex #trading #technicalanalysis

[@Tradeciety]

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[@Anto_2020]

ADX below 15 is consolidation ADX below 25 is weak trend ADX above 25 is strong trend

[@stephenpaeng492]

ADX is the best indicator invented by Wilder.

[@Incredibility]

Thanks for the detailed explanation...I'm glad I found out about your channel. Keep up the awesome work

[@Tradeciety]

Hello Mike, thanks for taking the time to leave a comment. Rolf

[@chanckeong]

Very good and i have tried using this indicator yesterday and ended in green zone. Well explained!!!

[@dannyphoenix1127]

Thank you, A very informative video. Question: what time frame is this ADX good, 1 min,5 min,15 min, hour charts?

[@Anto_2020]

Apply in Daily chart for weekly income trade & 15mins chart for intraday.. mostly all indicators r good in higher time frame only

[@jemmanou]

Very good video and is very detailed. The ema, what length does it have?

[@harichandranmt7688]

what is the recommended time frame for candle stick for intraday while following ADX above 20 for trends ?

[@rohitsawant1527]

15 min for NSE stocks

[@raecole4170]

Nicely simplified. Thanks

[@snidelywhiplash6889]

What's interesting is when the black line is heading downward and above the 20 line it's referred to as a weakening trend when to me it looks like a reversal as the candles are headed down which represents price points. MMM.

[@aloks81]

can we use this ADX indicator even in case of Delivery based Buying??? kindly reply...Love from India

[@qwertyui9201]

As per my understanding adx is used to differentiate trending and trading markets. Even though if price closes above/below 20d sma & without confirmation of adx the trade will max end up in loss. If price closes above 20d Sma with the Adx reading above 20 surely will be a big trade & vice versa. Mr.Rolf-pls comment.

[@Tradeciety]

You don't need the ADX. You just have to look at the candlesticks and if price breaks the SMA with momentum.

[@bilaljutt3603]

Soo nice your teaching way

[@OnenessAwareness]

Phenomenal explanation! Thank you!

[@kurtolson1303]

Good presentation !

[@JagdishPatel-hs3vg]

Very good sir

[@luiz8232]

Very good video.

[@almusic9006]

Thumps up sir.

[@nilupulsri9045]

💯

[@codfellaz]

ADX below 15 is consolidation ADX below 25 is weak trend ADX above 25 is strong trend

[@astanmorarji6865]

Hi Guys, I like the ADX but when I am trading with it "live", it's much harder to see or know whether it's giving a false signal. As ever, the signal line (or D-lines) can change within a candle or two. Would you only trade this in accordance with an MA maybe, or when we see a clear trend combine with Bollinger Band?

[@Tradeciety]

Yes, you can combine the ADX with MAs. Using one indicator alone is usually not a robust enough approach as you found out. Rolf

[@FirstNameLastName-fv4eu]

what a bogus guy!! reading history

[@rollingthunderofficial4783]

Basics cleared in 15 mins.Hats off to you for the simple explaination of the indicator.God Bless you.

[@GameDownloader112]

Good explanation and lots of examples, well done!!!

[@rafidtoohi2562]

Hi,,,lovely video,,,,no music and no special effects,,,, simple and clear,,,,,though I have a question,, I use mt4,,,,how can I change the settings for DI+ and DI- ?

[@moneymatters4093]

I am now slowly earning money now because of this video..superb explanation.

[@ameitrumane]

good explanation..!! : )

[@jasondavidsson7293]

Thank you for simplifying this indicator! =)

[@MOHDANWARify]

Fantastic explanation sir and very helpful. Thanks very much. Following your videos from now on.

[@Tradeciety]

Thanks, Mohamed. Thanks for taking the time to leave a comment. Rolf

[@caspermakgate934]

thanks good job

[@multiscan8]

I don't get it. ADX is supposed to show trend strength, but at the beginning of the video at 00:10 you can see a strong downtrend on the right of the chart with ADX going down, but then at 00:51 the presenter points to a smaller downtrend with a rising ADX to show how it works for a downtrend. This downward ADX especially doesn't seem to make sense after the presenter points out how ADX responded to price at the 2:36 mark. Seems to me the indicator does a better job of rising with larger range bars...but if the move consists of a persistent grind of small bars in one direction (a trend) it often goes flat or declines? Maybe the problem is that Wilder uses ATR in the calculation. When you read the formula there seem to be assumptions correlating Higher highs or lower lows, divided by ATR, to trend strength. But notice on the downtrend I mentioned at the beginning, even tho it's a steep down move, since many of the bars are very "wicky" with lows not that far apart, the ADX didn't recognize the biggest trend move on the chart. Could someone please tell me what I'm missing?

[@matatik]

very good video. Sadly not too many views, just shows why most are losers, they are simply uneducated! Thank you!

[@lazy_monster_gamerz]

red and green cross under 25 entry is ok ? my mentor teach me 2 line cross below 25 can entry. So, cross under 25 and wait either 1 line above 25 it is better ? which method is correct ?

[@franniefran9899]

Hi friend. Thank u. What other advanced indicators do u reccomend. I subscribed

[@guillermoriera1817]

Thank you for this explanation. What other indicators do you recommend to use with the ADX or should chart patterns and and trendlines be considered more. I use it with the PPO primarily. Any help would be greatly appreciated.

[@Tradeciety]

The ADX is a trend indicator so you can add a volatility indicator such as the Bollinger Bands and/or moving averages. Regular charting concepts such as trendline, support/resistance etc also work nicely for context. Rolf

[@thascophiladel8610]

Good video

[@CaptainCaveman782]

Makes it a lot easier if the ADX is plotted on a seperate chart as a histogram and overlay 10, 20 40 horizontal lines.

[@wallacecoleman4684]

Thank you for the information. Is the ADX and SMA line available during the live trades?

[@rafikshaikh2479]

Nice video sir.. pls create the crudeoil strategy video.. thanks

[@afkafz5264]

How do I add the line on the adx indicator which indicates trade allowed or not?

[@danielny266]

not as helpful since is a lagging indicator

[@thestuffedvegan9471]

🌟🌟🌟🌟🌟 Thank you.

[@anthonyabney9613]

ADX measures strength of direction not to point you in the right direction.

[@tehseenshaikh1882]

great video! helped alot... thanks.

[@ottawainvestor7551]

Thank you for the lessons. Great job.

[@WijthaGayan]

thank you

[@donjarrett1068]

Excellent thanks

[@youngentrepreneur000]

its lagging terribly

[@lawalabiodun2600]

Wonderful. Is there any volume indicator that uses the principles of the adx line( the black line) in this tutorial. Thanks for your response.

[@eddyvideostar]

To Lawal Adiodum: Maybe you could check the VWAP, would be the closest to this.

[@TheVijay_21]

Wonderful Explanation by you Sir, You are the King of technical analysis....... 👏👏

[@Tradeciety]

😁😁😁😁 Thanks!

[@georgemfavors5648]

thanks

[@palaniappan6339]

yes , nice explanation..

[@ravisaini1811]

👍

[@dharatienza3786]

Hi. I've tried this on a trading view but it shows only a one red line. Is there a specific set up for this indicator

[@Tradeciety]

You can go into the settings of the indicator and turn on other lines

[@rohithdeepala9430]

Use DMI indicator..... In ADX, you see only ADX line but in DMI, you see ADX along with +DI and -DI.

[@Andrewbliss44]

How to set up the green and red lines in ADX??

[@yoiyoikokon]

it depends on your platform. In Ninjatrader it's called DM. Or try to check ADX settings.

[@ekomabasiudoumoh8013]

to know the trend, which MA are u using ( SMA or EMA and the period)

[@mrgovin1285]

Both are ok

[@serdalk4479]

Gut erklärt

[@ekomabasiudoumoh8013]

Please which moving average are u using

[@kiddphantomm]

50

[@mhoadievdelapaz3703]

@@kiddphantomm Is it SMA or EMA?

[@parassarda5185]

When am I supposed to use this?

[@mikesz1333]

I use at 1H sometimes 4H, very good ,green line above bullish red line above bearish power, black line only shows power

[@eddyvideostar]

Many of these trends following indicators almost mirror themselves with the price. Could not the price tell me that a trend has skied or possibly beginning one? Some indicators are nice to have if you possess the real estate and can deal with the clutter. I believe in keeping this simple, especially at the outset. -------- Just as with the Bible: *I want to know how to be peaceable when it's difficult -- when the beasts are beating me down,* not the Revelation's beast with ten horns and seven heads; or when I want to fight back with resulting efficiency. Would I think about Xerxes, Onanism, Meshack, and Abednego when I am in deep doo-doo? Could I not work heavily and heartedly with the hard basics first? If I could do 9 of 10 commandments continuously credibly, *I am almost conquering the whole Bible!*

[@todayinfosys]

thanks