Trading of Forex Market with adx indicator
Today I am going teach you Forex trend indicator in which we will learn about adx indicator and it is completely strength indicator even currency pair’s trend may be up as well as down direction, adx itself not directional indicator it is only tell you strength of up and down direction.
Values of adx Indicator
And Now I am going to tell you values of adx indicator by which you will understand strength of up and down direction so let’s know what they are……
And keep in mind that you should not only consider direction of adx up or down but also adx values and strength because someone think that adx direction up so it mean trend will go up side and voice versa. It only tell you direction with help of +DI and -DI. when you use adx indicator you must draw horizontal line of 30 value of adx on chart for knowing strength and crossing that 30 line for moving trend direction with strength. May be a question arise in your mind that why I am telling you to draw 30 line value of adx on chart . It is very simple answer when adx cross 30 line of which I drawn on adx indicator.
DI Lines Crossover
when +DI line cross above –DI Line this is indication for buyers taking control of market(BUY). Well when you see such above situation +DI line cross above -DI line this is chance of going buying but you also consider adx value that must be more above 30. When +DI line cross below – DI Line this is indication for sellers taking control of market(SELL). Well when you see such above situation +DI line cross below -DI line this is chance of going selling but you also consider adx value that must be more above 30..
ADX Trend ,Range, Avoid and new Trend
ADX below 20 is ranging market and above 40 is trending market. When ADX line is below +DI & -DI then not to trade or avoid for trade. When ADX line is above +DI & -DI and turn above 20 then it start new trend. When ADX line above 40 and above both lines +DI & -DI then it break 40 and come down both lines +DI & -DI then we go for reversal for down .