ADX BTCUSD Analysis & ADX Bitcoin Trade Signals

Developed by J. Welles Wilder

This a momentum indicator used to determine the strength of a price trend: it is derived from the DMI - Directional Movement Index which has two lines.

+DI - Positive Directional Movement Index

–DI - Negative Directional Movement Index

ADX is calculated by subtracting these 2 values and applying a smoothing function.

ADX Cryptocurrency Indicator Technical Analysis - ADX BTCUSD Trading Indicator Analysis

The ADX is not a directional technical indicator but a measure of the strength of the bitcoin trend which has a scale of Zero to 100.

The higher the technical indicator value the stronger the trend.

A value of below 20 indicates that the btcusd market is not trending but moving in a range.

A value of above 20 confirms a buy or sell cryptocurrency signal and indicates a new bitcoin trend is emerging.

Values above 30 signifies a strong trending market.

When ADX indicator turns down from above 30, it indicates that the current bitcoin trend is losing momentum.

ADX combined with DMI Technical Indicator

Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of bitcoin crypto.

ADX BTCUSD Trading Indicator Analysis

DMI

ADX & DMI Index

ADX indicator & DMI Index - ADX Crypto Indicator Analysis

When the ADX is combined with DMI index a trader can figure out the direction of the bitcoin trend and then use the this indicator to determine the momentum of the prevailing bitcoin trend direction.