The trend is your friend (5)

ADX


Lastly we can use ADX to assess the trend strength.

When the ADX reading is above 20, it indicates a strong trend – something that we should take advantage of.

There are 2 other lines +DI and –DI under the directional system that we should be aware of.


When +DI is above –DI, it suggests that the trend is up.

When +DI is below –DI, it suggests that the trend is down.