ADX measures the strength of a price trend without showing its direction by itself.
The indicator consists of three lines: +DI, -DI, and ADX. +DI measures upward price pressure, -DI measures downward pressure, and ADX measures overall trend strength. As a rule, values below 20-25 suggest a weak or sideways market, values above 25-40 indicate a stronger trend, and values above 50-60 indicate a very strong trend that may also signal exhaustion.
The relationship between +DI and -DI helps determine direction: +DI > -DI indicates buyers are in control, while -DI > +DI indicates sellers are in control.
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