ADX: Difference between revisions
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The ADX measures the strength of a prevailing trend as well as whether movement exists in the market. | The ADX measures the strength of a prevailing trend as well as whether movement exists in the market. | ||
== Description == | |||
A low ADX value (generally less than 20) can indicate a non-trending market with low volatility whereas a cross above 20 may indicate the start of a trend (either up or down). If the ADX is over 40 and begins to fall, it can indicate the slowdown of a current trend. This indicator can also be used to identify non-trending markets, or a deterioration of an ongoing trend. Although market direction is important in its calculation, the ADX is not a directional indicator. | A low ADX value (generally less than 20) can indicate a non-trending market with low volatility whereas a cross above 20 may indicate the start of a trend (either up or down). If the ADX is over 40 and begins to fall, it can indicate the slowdown of a current trend. This indicator can also be used to identify non-trending markets, or a deterioration of an ongoing trend. Although market direction is important in its calculation, the ADX is not a directional indicator. | ||
== Default Inputs == | |||
'''Length(14)''' sets the number of bars to use in the calculation of ADX. | '''Length(14)''' sets the number of bars to use in the calculation of ADX. | ||
Revision as of 13:40, 19 September 2024
The ADX measures the strength of a prevailing trend as well as whether movement exists in the market.
Description
A low ADX value (generally less than 20) can indicate a non-trending market with low volatility whereas a cross above 20 may indicate the start of a trend (either up or down). If the ADX is over 40 and begins to fall, it can indicate the slowdown of a current trend. This indicator can also be used to identify non-trending markets, or a deterioration of an ongoing trend. Although market direction is important in its calculation, the ADX is not a directional indicator.
Default Inputs
Length(14) sets the number of bars to use in the calculation of ADX.
