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TrendIntermediate
ADX
Measures trend strength (not direction by itself). High ≈ trend present; low ≈ range more likely — with failures.
Formula (conceptual view)
Derived from +DI/−DI smoothed ranges (classic period 14). ADX itself is non-directional.
Common parameters: 14
How to read
- ▸Rising ADX often means a trend is strengthening.
- ▸Direction still comes from structure or +DI/−DI / price.
- ▸Do not buy only because ADX “turned on”.
- ▸Use to label scenario in the journal (trend vs range).
Common mistakes
- ✕ Treating ADX as a buy/sell arrow.
- ✕ Ignoring range false signals.
- ✕ No risk plan when ADX is high (chasing).
Works well with
HH/HL structureATRMoving averages