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adx Indicator in trading of forex market

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……

adx Indicator
adx Indicator

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.

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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 .

About Muhammad Shahid Memon

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4 comments

  1. Abdul Hameed Sher

    salam_o_alikum main aaj bhot khush hon k mujhe adx indactor k awale se ake complete aur aasan video mile Allah ap ko iska ajer dey
    God bless you

  2. salam sir it is very nice video of adx indicator i ever never watch such in sample way training you are very nice person God bless you

  3. Dear Students,

    very very Thanks both of you I am trying my level best to teach real ideas of building block of Technical Analysis and more….

  4. salam sir very nice video adx indicator nice working this adx video vip sir

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