====== Forex - Indicators - ADX (Average Directional Index) ====== A Trend Strength Indicator, how strong a trend is. 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.