Definition of the Average Directional Movement (ADX) Indicator: The Average Directional Movement indicator, also known as ADX, is classified as a trend indicator. It was developed by J. Welles Wilder. Being a trend indicator, the ADX is created to measure the trend of the market, as well as the extent to which a currency pair is trending. ADX is plotted as a single line with values ranging from a low of zero to a high of 100. ADX is non-directional; it registers trend strength whether price is trending up or down. Iqoption ADX indicator. ADX (Average Directional Index) is an indicator that is used to measure strength of the trend on iqoption. Alongside minus directional indicator (-DI) and the plus directional indicator (+DI), it forms a group of directional movement indicators that are used to effectively measure both the strength and direction of the trend. The strategy is to look for when the advanced_ADX.ex4 indicator and the afl_winner.ex4 indicator show the same colour, and when price is also trading on a bounce or on a rejection at a trend line joining the lows or highs of price action. Both indicators have green bars and red bars. The afl_winner.ex4 indicator is unique in that it moves and ... How to Use ADX Indicator to Trade Stock & Binary Options. The ADX, or Average Directional Index measures the strength of a trend and can be useful to determine whether an asset is currently in a trending market or a ranging market. The ADX indicator ranges from 0 to 100. An ADX reading of 20 and lower indicates ranging or weak trend.
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