My Trading System – the Indicators

Average Directional Index is an indicator used in technical analysis as an objective value for the strength of trend. ADX is non-directional so it will quantify a trend’s strength regardless of whether it is up or down. ADX is usually plotted in a chart window along with two lines known as the DMI (Directional Movement Indicators). ADX is derived from the relationship of the DMI lines. The DMI lines will give you the direction needed for trading. ADX Trend strength I use an adapted version of ADX in order to determine trend strength and trend direction. Trend... Read The Rest →