The ADX is a volatility indicator that was invented by J. Welles Wilder. It measures the current volatility in the market.
When the market is not volatile, it will remain low and very probably with a value below 20. However, when the volume starts entering the market and the price becomes more volatile, the ADX will rise.
This indicator is commonly used to anticipate the end of ranging markets and the beginning of a trend.
The ADX generates signals when it rises above a specific threshold. When it’s above the threshold, the indicator will send a confirmation signal. This signal will let the other indicator(s) open or close a position. Likewise, if the ADX is below the threshold, no confirmation signal will be sent and it won’t let the other indicator(s) to open or sell a position.
What strategies or Bottrex is available for this indicator?
- Abaixo do Valor: When or current value estiba abaixo do value that you defined.
- Acima do Valor: When or current value estima acima do value that you defined.
- Ascendant Crossing: When or current value to cross to the top of the value that you defined. Ex .: Present value at 30. No previous candle was at 29, depois subiu e cruzou os 30 e foi para o 31, it could mean one entry. This option includes a safety limiter for buying when or at the current value of the current indicator with a value of + 10, for example: it is defined as a value of 30, or its safety limiter will be 40 if it is going to be ordered or current value. estiver abaixo de 40.
- Descending Cross: When or current value to cross for the value that you defined. Ex .: Present value at 30. No previous candle was at 31, depois desceu e cruzou os 30 e foi para o 29, it could mean one entry.