The Average Directional Movement Index (ADX)
The Average Directional Movement Index (ADX), developed by famed trader Welles Wilder in 1978, is used by traders to determine trend strength and direction. Detecting and trading in the direction of a strong trend is conventional financial advice.
ADX is a popular indicator among traders of all skill levels. In terms of functionality, the ADX is a good indicator for determining market situations. Traders can quickly determine and use the proper strategy.
ADX belongs to the broader group of trend-following indicators. ADX is great for short-term traders in forex, gold and oil, cryptocurrencies, and shares. ADX adjusts quickly to market conditions.
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