Is ADX the best Technical Indicator?

ADX (Average Directional Movement indicator), most of the peoples are saying that ADX is probably the best indicator. ADX was developed by J. Welles Wilder in order to evaluate the strength of the current trend.

Technical Analysis of Delta Spinning as per ADX

It is an oscillator that fluctuates between 0 and 100. Below 20, it indicates a weak trend and while above 40, it indicates a strong trend.

Another two indicators come with ADX, they are called the Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI). +DI measures the force of the up moves and –DI measures the force of the down moves.

There is a lot of use for this indicator, some people suggest buying when ADX > 40, others when ADX is rising and DI above -DI.

Posted in: Best Indicators,Technical Analysis