Indicateur forex tendance
Date: 2017-03-21 19:54
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ADX -/+ DI lines are used for spotting entry signals. All -/+ DI crossovers are disregarded while ADX remains below 75. Once ADX peaks above 75 a buy signal occur when +DI (green) crosses upwards and above -DI (red). A sell signal will be the opposite: +DI would cross -DI downwards.
If after a newly created signal another opposite crossover happens within a short period of time, the original signal should be disregarded and position protected soon or closed.
ADX indicator has 7 lines: ADX itself (white), +DI (green) and -DI (red).
Traders then need to draw a horizontal line at the level of 75.
All readings of ADX which are below 75 suggest a weak and unclear trend, while readings above 75 indicate that a trend has picked up.
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ADX indicator is never traded alone, but rather in combination with other indicators and tools. ADX indicator most of the time gives much later signals comparing to faster reacting moving averages crossover or Stochastic, for example, however, reliability of ADX indicator is much higher than for other indicators in traders' toolkit, which makes it a valuable tool for many Forex traders.
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Trading with ADR involves the following signals:
ADR rising and so does the price healthy trend.
ADR falling and so does the price healthy trend.
ADR reading diverge from the price trend may change.
ADR indicator is used widely as a overbought / oversold indicator where extremely high reading suggest the market being overbought while extremely low readings suggest an oversold market. However, the market can remain in overbought/-sold condition for an extensive period of time, therefore an additional confirmation signal from other tools is needed to confirm a move.
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If ADR is less than 6 it means that there is more declining moments than advancing. If ADR is higher than 6 – advancing moments prevail.
Similar to all other momentum indicators the cross of level on ADR indicator is an important signal of an established trend while the distance from this level describes maturity of the trend.
Advancing moments - the number of bars that closed above their opening price.
Declining moments - the number of bars that closed below their opening price.
The author of Average Directional Index J. Welles Wilder considers his ADX indicator as a primary achievement and only because signals given by ADX are not an easy to take a grasp of from the first look, many Forex traders avoid using ADX in favor of more visually comprehensive indicators.