The average directional index (ADX) is a technical indicator that quantifies the strength of trends. It can help traders reduce risk and increase profit potential.

In the trading world, having the right tools and knowing how to use them correctly can be the difference between success and failure. One such tool is the Average Directional Index (ADX), which is ...

Watch and learn to see how our own top chart strategist combines the Average Directional Index with chart patterns to confirm buy signals.

Entering into a fading or weakening trend is one of the most frustrating things a trader can encounter. Many traders have strategies for trend entry but if a trend has run its course and is weakening ...

ADX stands for Average Directional Movement Index, an oscillator driven by a mathematical derivation used in technical analysis to assess the strength of a price trend in a financial security.

One of the difficulties in trading is that it is not easy to determine whether a trend will continue or whether it is poised to reverse. Correct risk management will ensure that an incorrect trade ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Somer G.

Detecting a strong directional move is the most important skill for all traders to have. Trend chasing is the most popular technical method of profitable trading. But stock prices spend more time in ...

One of the difficulties in trading is that it is not easy to determine whether a trend will continue or whether it is poised to reverse. Correct risk management will ensure that an incorrect trade ...

Investors with short-term timeframes often use technical analysis to evaluate price movement and identify trends. Fundamental analysis may not be particularly useful for traders looking to pop in and ...