Need help with ADX

Beginner Questions
1

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.

Thanks a lot.

2

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.

Hope that helps :slight_smile:

3

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.

4

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.

Here’s an ADX-cellent article: :slight_smile:

ADX: The Trend Strength Indicator