ADX Momentum Indices Breakout Indicator Technical Analysis and DX Momentum Trading Strategies Signals
ADX is a momentum technical indicator used to trade indices - ADX Momentum Breakout Indicator.
ADX Momentum Breakout Indicator is used to measure the strength of indices market trends on a scale of 0 - 100; the higher the ADX Momentum value the stronger the current stock indices trend. It should be noted that while the direction of the stock indices price is important to the ADX Momentum indicator calculation, the ADX Momentum indicator itself is not a directional indices indicator. ADX Momentum Indices Indicator values above 30 indicate a very strong indices trending market, while ADX Momentum Indices Indicator values below 20 indicate non-trending indices market or a ranging stock indices market.
Traders use the ADX technical indicator as a filter along with other technical indicators to create Stock Indices ADX Momentum Trading Strategy.
Many traders interpret ADX momentum indicator zones turning up from below 20 as an early trading signal of a new emerging indices trend breakout signal - while declining ADX indicator levels turning down from above 30 as a reversal of the current stock indices trend.
ADX Momentum technical indicator should be used as part of a indices trading system that includes the +DI & -DI lines. Most indices trading platforms integrate the original ADX Indices Indicator with the +DI and -DI indicators -DMI Index and collectively refer to the whole indices indicator system as the ADX Momentum Indices Technical Indicator.
In the ADX indicator examples explained and illustrated below:
ADX Momentum Indices Indicator is the light green line
+DI is the blue-line - bullish line
- DI is the red-line - bearish line
ADX Indices Strategy That Works - ADX False Breakout Indicator MT4 - Stock Indices ADX Momentum Trade Strategies Guide
Bullish Stock Indices Trend - when the +DI, blue-line is above the -DI, red-line
Bearish Indices Trend - when the -DI, red line is above the +DI, blue line
ADX Momentum Strategies Guide
A bullish stock index signal is generated when +DI line is above the -DI line, when the blue line is moving above the red line.
To identify a strong bullish ADX Momentum Break out trading signal we wait until the ADX Momentum technical indicator values move above 20, and the blue line is above the red line. This is a bullish ADX Momentum Breakout trading signal because the DMI system identifies the indices signal as a buy, while ADX Momentum indicator levels above 20 shows there is a strong upward momentum stock indices trend.
ADX Momentum Strategies Guide
A bearish trading signal is generated when redline is above the blue line i.e. The -DI line is above the +DI line. A strong short signal will be generated when this bearish trading signal is supported by an ADX Momentum value of above 20.
To identify a strong bearish ADX Momentum Breakout trading signal we wait until the ADX Momentum technical indicator values move above 20, and the red-line is above the blue line. This is a bearish ADX Momentum Breakout trading signal because the DMI system identifies the indices signal as a sell, while ADX Momentum indicator levels above 20 shows there is a strong downward momentum stock indices trend.
