Question: How to read ADX indicator signals?

Question: How to read ADX indicator signals?

Answer

Signals are given both by the main line of the indicator and auxiliary ones. The trend is considered weak if the indicator line is below the 20% level, a strong trend is the line above the 40% level. The signal to open a deal is the intersection of the +Di and -Di lines. If after crossing +Di is above -Di - a signal to open a long position, below - short. The intersection of +Di and -Di with ADX above 20% is an exit from the flat, with ADX in the range of 40-60% - a possible change in the direction of the trend.

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