Strong Directional Movement

Invest at the beginning of the strong uptrend.

Average Directional Index-ADX is an indicator used in technical analysis as an objective value for the strength of a trend. When ADX is above 25, it means a strong uptrend or downtrend is coming. When ADX falls below 20, it means no trend and useless/waste of time for investors to trade the stock. When ADX near 40 to 60, the trend is at the maximum level. It also means the short-term uptrend is ending. +DI and -DI alongside with the ADX are used to measure the strength or weakness of a trend. 

 

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