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ADX Indicator: Measuring Trend Strength
3:04 · 8 chapters · Forex lessons, part 23
What you'll learn
ADX tells you how strong a trend is, not which way it is going. Here is how to read it in under 3 minutes.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What the ADX measures, and why a rising line does not mean rising price
- Key point 2
- The reference zones: below 20, 20 to 25, and above 25
- Key point 3
- How +DI and -DI show who is in control
- Key point 4
- Using ADX as a regime filter and a breakout check
- Key point 5
- The default 14 setting and the indicator's blind spots
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.