The Advanced ADX gives two pieces of information, which are essential to traders: the direction and the strength of the trend. The traditional ADX indicator, designed by J. Welles Wilder, only indicates the strength of the trend.

A good trend indicator is always worth its weight in gold to the trader!  This indicator:

• Can be applied to every instrument.
• Can be used in any time frame.
• Is easy to understand and easy to use.

The Advanced ADX is available free of charge in the NanoTrader platform.

Interpreting the Advanced ADX indicator

Interpreting this technical analysis indicator is easy. A green histogram indicates that the trend is bullish. A red histogram indicates that the trend is bearish.

A high value indicates a strong trend. A low value indicates a weak trend. Traders usually use these values:

0-25: No trend or weak trend
26-50: Strong trend
51-75: Very strong trend
76-100: Extremely strong trend

The Advanced ADX indicator can be used as a signal or as a signals filter in the NanoTrader platform.

This example shows the Advanced ADX indicator in a 60-minute chart, calculated over a 14-day period. The trend is bearish (red histogram) and weak (22,16).

This example shows the DAX market index in a 60-minute chart. The Advanced ADX indicator informs the trader that the trend currently bearish (red histogram) and weak (22,68) is.

This example shows a trend, which is bullish (green histogram) and strong (38,98). The traded added the DMI lines (DI+ / DI-), which are used to calculate the ADX.

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"The market is a device for transferring money from the impatient to the patient."

– Warren Buffet