Question: How to read ADX?

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Question: How to read ADX?

Answer

The indicator consists of three lines. From the ADX line, we can measure the strength of the main trend: 

  • 0-25 - the trend is weak or absent 
  • 25-50 - the trend is strong 
  • 50-75 - the trend is very strong 
  • 75-100 - the trend is incredibly strong  

By the lines of the two direction indicators +DI and -DI, we can determine the direction of the trend and market sentiment:  

  • the +DI line above the -DI line is an uptrend, bullish sentiment.  
  • the -DI line above the +DI line is a downtrend, bearish sentiment. 

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