Average Directional Index , ADX represents part of the system of Directional Movement Index and is based on filtration pursuant to paces of price change. It was first time introduced by J. Welles Wilder in 1978 in "New Concepts in Technical Trading Systems" book. ADX figures should be of immediate interest when its value is above 20 - 22. When ADX is reversed from top to bottom, current tendency loses its intensity and probability of correctional movement or reversal grows. Therefore, when ADX enters zone of extreme values, it is important to trace a probable change of trend's direction.
On the Forex market 2 groups of participants can be conditionally distinguished. Big participants are those making transactions of large volumes. First of all this group includes commercial banks, Central Banks, market makers and funds – able to operate with amounts of billion US dollars and thereby influencing market a lot.
Average Directional Index , ADX represents part of the system of Directional Movement Index and is based on filtration pursuant to paces of price change. It was first time introduced by J. Welles Wilder in 1978 in "New Concepts in Technical Trading Systems" book. ADX figures should be of immediate interest when its value is above 20 - 22. When ADX is reversed from top to bottom, current tendency loses its intensity and probability of correctional movement or reversal grows. Therefore, when ADX enters zone of extreme values, it is important to trace a probable change of trend's direction.
