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How to Use ADX to Identify Forex Trends

From dailyfx.com

The Average Directional Index (ADX) rates how much a currency pair is trending on a scale from 0 – 100. A pair moving sideways shows an ADX level below 30 while a trending pair shows an ADX level of 30 or higher. Keep in mind that the ADX is directionally neutral, meaning it does not indicate a bearish or bullish trend, only if a trend exists or not. ‘How can I determine if a pair is trending or not?’ This is a common question we are asked at DailyFX EDU. A common tool used by many traders to answer that question is the Average Directional Index (ADX). Over the next few minutes, we’ll explain what the ADX is and how ... (full story)

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