- How to Read the Indicator
Generally, this indicator is considered an oscillator. It fluctuates between 0 and 100.
The indicator's main line, the ADX, shows the strength of a trend: the higher it is, the stronger the trend (regardless of direction). Values up to 20 indicate a weak trend, from 20 to 40 a medium trend, and over 40 a strong trend. Values from 40 to 60 indicate a very strong trend. ADX values over 60 are very rare.
The two opposing lines of the ADX indicator (+DI and -DI) mark bullish or bearish trends:
– if the +DI line is above the others, the trend is bullish,
– if the -DI line is highest, the trend is bearish.