ADX BTCUSD Analysis & ADX Bitcoin Trade Signals

Developed by J. Welles Wilder

This a momentum indicator used to determine the strength of a bitcoin price trend: it is derived from the DMI - Directional Movement Index which has two lines.

+DI - Positive Direction Movement Index

–DI - Negative Direction Movement Index

ADX is calculated by subtracting these 2 values & applying a smoothing function.

ADX Cryptocurrency Indicator Analysis - ADX BTCUSD Trading Indicator Analysis

The ADX is not a directional technical indicator but a measure of the strength of the bitcoin trend which has a scale of Zero to 100.

The higher the technical indicator reading the stronger the trend.

A value of below 20 indicates that the btcusd market is not trending but heading in a range.

A value of above 20 confirms a buy or sell cryptocurrency signal and indicates a new bitcoin trend is emerging.

Values above 30 signifies a strong trending market.

When ADX trading indicator turns down from above 30, it demonstrates that the current bitcoin crypto currency trend is losing momentum.

ADX combined with DMI Technical Indicator

Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of bitcoin crypto.

ADX BTCUSD Trading Indicator Analysis - ADX BTCUSD Indicator - ADX Technical BTCUSD Indicator

DMI

ADX and DMI Index

ADX indicator & DMI Index - ADX Indicator Analysis

When the ADX is combined with DMI index a trader can figure out the direction of the bitcoin trend and then use the this indicator to determine the momentum of the prevailing bitcoin trend direction.

BTCUSD Crypto Analysis and Generating Signals

Buy Signal

A buy cryptocurrency signal is generated when the +DI is above –DI, & the ADX technical indicator is above 20

The Exit signal is generated when technical indicator turns down from above 30.

ADX Technical Indicator - ADX BTCUSD Technical Indicator Analysis - ADX Indicator

Buy Crypto Trading Signal

Sell Trading Signal

A short signal is generated when the –DI is above +DI, and the ADX technical indicator is above 20

Exit signal is generated when technical indicator turns down from above 30.

ADX Indicator - ADX Technical Crypto Indicator - How Do I Place ADX Bitcoin Indicator in Chart on Platform Software?

Sell Crypto Trading Signal

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