My ADX displays 3 lines. All 3 face different direction most of the time.I need to know which line does what? Which one indicate a trend strength and which one to ignore ? I read somewhere that the top line is the one to use as a … .Any one who uses ADX please explain.
With my limited exposure to it, the ADX line represents the strength of a trend…above 20 or 25 is considered being in trend, under 20 is not.
The DI+ is the up trend, and DI- is the down trend.
So if the ADX and DI+ is rising and above the DI-, then the uptrend is strengthening, if the ADX is falling but the DI+ is still above, then it’s still an uptrend, but weakening. Conversley, the DI- is above the DI+ and rising then it’s in a down trend, and if the ADX is rising, it’s in a strong down trend. If all lines are under 20, then ignore all signals as its ranging.
There is more, like points extremum, and a couple of others characteristics that one can use to detect entry & exit points, but if you google it, you’ll find more info.
Thanks so much, and just a one more Q. ADX on my platform displays blue, red and green lines and I can’t tell which is D+, D- or ADX. I assume ADX is the top blue line when the trend is flat, but D- and D+ are? I did googe earlier, but found no answer.
If you are using MT4, you can put your cursor on either of the lines and it should display it’s description. Otherwise, usually the DI+ is green, DI- is red, and as you thought, the blue is the ADX.