JayneshKasliwal
@JayneshKasliwal
9 Tweets • 2022-01-01 08:14:43 UTC • See on Twitter
rattibha.com
A Thread on indicator : ADX
Average Directional Index a Quick Guide
Retweet Share !
@Techno_Charts
1/n
One of the best and easiest ways to increase your chances of making
winning trades is to trade with the trend
The average directional movement index or ADX is an indicator that
will not help you find a trend,but can show you how strong a trend is
@Puretechnicals9 @StocksNerd
2/n
What is the Average Directional Movement
Index?
1. The average directional movement index was created by J. Welles
Wilder in the 1970s.
2. The ADX combines two indicators to create a smoothed moving
average that is then shown on your charts.
3/n
3. The two indicators are the positive directional indicator that is
known as +DI and
the negative directional indicator that is known as -DI.
4. You can use the ADX on all time frames
5. Type " ADX " In indicator section of tradingview
4/n
The ADX Indicator Formula
These are calculated with the price history of the previous high, low
and close for the previous 14 periods ( default 14)
The average directional movement index is designed to show you the
strength of a trend and not when a new trend is beginning.
5/n
Average Directional Movement Index Reading
● 0 – 25: Ranging or no trend
● 25 – 50: Trending
● 50 – 75: Strong Trend
● 75 – 100: Very Strong Trending Market
6/n
When you have the ADX plotted on your chart you will see one main
reading that moves higher and lower. This visually shows you the
peaks and troughs of the
trends momentum.
When you begin seeing larger readings over 25 you can quickly
identify that price is in a trend.
7/n
When the average directional movement index is making a series of
lower readings you can see that price has little momentum.
This also indicates you may want to look for trades other than trend
trades.
Use Line tool to mark the 25 level to identify trend change
@kuttrapali26
Join telegram for free
Join Paid Group at 300 Per month
https://t.me/Techno_charts
https://app.cosmofeed.com/view_group/61933014c9a5ea1ee16d9bec
These pages were created and arranged by Rattibha services (https://www.rattibha.com)
The contents of these pages, including all images, videos, attachments and external
links published (collectively referred to as "this publication"), were created at the
request of a user (s) from Twitter. Rattibha provides an automated service, without
human intervention, to copy the contents of tweets from Twitter and publish them in
an article style, and create PDF pages that can be printed and shared, at the request
of Twitter user (s). Please note that the views and all contents in this publication
are those of the author and do not necessarily represent the views of Rattibha.
Rattibha assumes no responsibility for any damage or breaches of any law resulting
from the contents of this publication.
