ADX Indicator Trading Strategy (Video Tutorial)
Hey guys, It’s Shoaib here and Today I’ll explain you ADX Indicator Trading Strategy in details. In this video, you’ll get a Secret Strategy of ADX Indicator. It’s another Technical Indicator which can be very helpful to determine the strength of a Market Trend, Entry Signals, and Reversal Points.
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What is the ADX indicator?
The Average Directional Index (ADX) Indicator, is another example of an oscillator.
The most common use of ADX indicator is to determine the market trend either it is Ranging Market or it’s going to start a new Trend. The default value or period is set as 14 but you may change it levels according to your needs.
IMPORTANT POINTS OF ADX INDICATOR
- WHITE LINE = ADX LINE
- RED LINE = -DI
- BLUE LINE = +DI
- ADD 40.00 LEVEL FOR THE REVERSAL POINTS
- ADD 30.00 LEVEL TO CHECK REQUIRED STRENGHT OF A TREND
- ADD 20.00 LEVEL FOR A BETTER SIGNAL
- 0.25 = No or weak trend
- 25-50 = Strong trend
- 50-75 = Very strong trend
- 75-100 = Extremely strong trend
- If +DI cross -DI in up direction = Buy Signal
- If +DI cross -DI in lower direction = Sell Signal
- If ADX Line first go above than 40 Level and return below from 40 Level the market will be retrace
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