Hello Deriv Community,
The ADX (Average Directional Movement Index) is an indicator utilized to gauge the potency of a trend in a financial market. Its calculation involves averaging the price range’s upward movements over a specified period. Traders often rely on ADX to determine whether the market is trending or consolidating, as well as to evaluate the trend’s strength if there is one. By combining ADX with other analytical techniques, like chart patterns and indicators, traders can obtain a more comprehensive understanding of market dynamics and make more informed trading decisions.
Where to find the Average Directional Movement Index
- Click File.
- Click Insert.
- From the drop-down menu, choose Indicators.
- You will see the Average Directional Movement Index indicator.
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