⚡️Episode 80: ADX Indicator – Know the True Strength of the Trend! 🚀📈
Is the trend strong and worth intervening with?
Or weak and likely to reverse soon?
The ADX indicator gives you the answer clearly! 🔍🔥
📊 What does ADX mean?
Short for:
Average Directional Index
It is an indicator that measures trend strength — without caring whether it’s upward or downward.
⬆️ Strong trend? → ADX is rising
⬇️ Weak trend or sideways market? → ADX is falling
💡 How to interpret ADX reading?
✅ Below 20 → No clear trend (Boring or sideways market)
✅ From 20 to 40 → Moderate to strong trend
✅ Above 40 → Very strong trend
🔍 What can you do with it?
🔸 Filtering false signals:
Don’t enter trades in a weak trend – save your time!
🔸 Confirming Breakouts:
Is the breakout of resistance real? See if ADX is rising
🔸 Combining with Trend Indicators:
Like RSI or MACD to know the direction and speed
⚠️ But be careful:
❌ ADX doesn’t tell you if the trend is upward or downward – only its strength
❌ Alone it’s not enough, use it with indicators that determine the trend
🟢 Is it available on Binance?
Yes ✅
Search for "ADX" in the indicators list
🛠️ How to Add it on Binance:
Open the chart
Click on [🧠 Indicators]
Type “ADX”
Add it – the default settings (14) are suitable
📌 Tip for professionals:
If ADX is rising and the price breaks resistance – often the move is strong and likely to continue!
But if ADX is falling → ignore the signals, the market is weak.
🚀 ADX gives you a competitive edge – know when the market deserves your intervention… and when it’s best to stay away
🔥 Next episode: A strange indicator… gives signals based on "price congestion" – and tells you when to refrain from trading