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--- forex:indicators:adx_average_directional_index [2022/12/09 22:12] – created peter
+++ forex:indicators:adx_average_directional_index [2022/12/09 23:05] (current) – peter
@@ Line 5: / Line 5: @@
 The indicator is based on a moving average of price range expansion over a given period of time.
+----
+Comprises three lines:
+  * Positive directional indicator +DI;
+  * Negative direction indicator -DI;
+  * The ADX itself.
+----
+===== Buy =====
+A Buy signal (in an uptrend) is generated when +DI rises above -DI.
+----
+===== Sell =====
+A Sell signal (in a downtrend) is generated when -DI rises above +DI.
+----
+Both signals are valid only if the ADX itself is rising, which indicates the presence of a trend.
+And if the ADX is falling, it's time to think about profit-taking.