Beginner’s Guide to the Average Directional Index Indicator

The Average Directional Index (or ADX) is a popular indicator for measuring the strength of a trend. In this video, Peter Martin provides an introduction to the indicator and runs through a number of examples using real price charts to illustrate what the three different lines on the indicator mean. He explains how you can use the ADX indicator to gain information about whether the market is trending or not and whether the trend is strengthening or weakening. The video also outlines some simple trading signals, and the thinking behind when to follow them and when to ignore them.

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