— HOW IT WORKS
What ADX does, and when it works.
ADX measures the strength of a trend — not its direction — on a 0–100 scale, usually with the +DI and −DI lines that show which side is in control. The classic read: ADX above ~25 means a trend worth following; below ~20 means range/chop where trend tools will whipsaw.
Its real job is as a filter on top of other indicators. Pair it with a moving average or Supertrend and only take trend signals when ADX confirms strength — that single gate removes most of the false signals trend tools generate in flat tape.
ADX lags and says nothing about direction on its own; a high reading can mean a strong downtrend just as easily as an uptrend. Read it alongside +DI/−DI, never in isolation.
— BEST FOR
Where it earns its slot.
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