No Nonsense Gold ADX Technical Analysis
The ADX indicator is a momentum indicator created by J. Welles Wilder.
ADX indicator is used to measure the strength of gold trends on a scale of 0 - 100; the higher the ADX indicator value the stronger the current Gold trend. It should be noted that while the direction of xauusd price is important to the ADX indicator calculation, the ADX indicator is not a directional indicator. ADX indicator values above 30 indicate a very strong gold trend, while ADX indicator values below 20 indicate no trend gold market - ranging market.
Traders typically use the ADX technical indicator as a filter combined with other indicators to create a gold trading strategy.
Gold technical analysis ADX indicator levels turning up from below 20 is an early signal of a new gold trend while declining levels turning down from ADX indicator levels above 30 as deterioration of the current xauusd trend.
ADX technical indicator should be used as part of a gold trading strategy that includes the +DI and -DI lines. Most gold platforms integrate the original ADX indicator with the +DI and -DI indicators (DMI Index Indicator) & collectively refer to the whole system as the ADX indicator.
In the gold example illustrated and explained below:
ADX indicator is the light green-line
+DI is the blueline(bullish line)
- DI is the red-line(bearish line)
No Nonsense ADX XAUUSD Indicator - No Nonsense XAUUSD ADX Trading Analysis - No Nonsense ADX Gold Strategy
- Bullish Trend - No Nonsense Gold ADX Technical Analysis- when the +DI, blue line is above the -DI, red line
- Bearish Trend - No Nonsense Gold ADX Technical Analysis- when the -DI, red line is above the +DI, blue line
Bullish Trading Signal
A bullish gold trading signal gets generated when +DI line is above the -DI line, when the blue line is moving above the red line.
To identify a strong bullish gold signal gold trader should wait until the ADX Gold Indicator values are above 20, and the blue line is above the red line. This is a bullish gold trading signal because the DMI Index system identifies the gold signal as a buy, while ADX Gold Indicator levels above 20 shows there is a strong upward Gold trend.
Bearish Trading Signal
A bearish gold signal is generated when the red line is above the blue line that is the -DI line is above the +DI line. A strong sell signal will be generated when this bearish gold signal is accompanied by an ADX Gold Indicator value of above 20.
No Nonsense XAUUSD ADX Buy and Sell Gold Signal Indicator - No Nonsense Gold ADX Technical XAUUSD Indicator Described
