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Showing posts from January, 2015

Average Directional Movement Index (ADX) Technical Indicator Tutorial

Average Directional Movement Index, directional system (indicator developed by George. W. Wilder (JW Wilder) in addition to the Parabolic SAR system for measuring the intensity of the market trend; if the ADX is rising, it means that the market tendency becomes stronger, which is favorable condition for entering into transactions, and when ADX falls, it means that the trend in question, in this case the important signals given by the oscillators RSI and Momentum).
The author of this indicator is Welles Wilder, who described it in his book "New Concepts in Technical Trading Systems".
This method is based on a comparison of the 14 and 14 day -DI-period + DI, or subtracting the second from the first, or by applying indicators to each other. When the + DI above -DI, it is a clear signal to buy, if, on the contrary, lower - something for sale.
The simplest trading method based on the system of directional movement implies comparison of two direction indicators: the 14-period + DI an…