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Popular Chart Indicators 热门图表指标: Page 6 of 9

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How to Use ADX (Average Directional Index)

The Average Directional Index, or ADX for short, is another example of an oscillator. It fluctuates from 0 to 100, with readings below 20 indicating a weak trend and readings above 50 signaling a strong trend.

Unlike the stochastic, ADX doesn’t determine whether the trend is bullish or bearish. Rather, it merely measures the strength of the current trend. Because of that, ADX is typically used to identify whether the market is ranging or starting a new trend.

Take a look at these neat charts we’ve pulled up:

 

ADX used on a downtrend
In this first example, ADX lingered below 20 from late September until early December. As you can see from the chart, EUR/CHF was stuck inside a range during that time. Beginning in January though, ADX started to climb above 50, signaling that a strong trend could be waiting in the wings.

 

And would you look at that! EUR/CHF broke below the bottom of the range and went on a strong downtrend. Ooh, that’d be around 400 pips in the bag.

Book it, baby!

Now, let’s look at this next example:

 

ADX used on an uptrend
Just like in our first example, ADX hovered below 20 for quite a while. At that time, EUR/CHF was also ranging. Soon enough, ADX rose above 50 and EUR/CHF broke above the top of its range.

 

Tada!

A strong uptrend took place. That’d be 300 pips, signed, sealed, and delivered!

Looks simple enough, right?

If there’s one problem with using ADX, it’s that it doesn’t exactly tell you whether it’s a buy or a sell. What it does tell you is whether it’d be okay to jump in an ongoing trend or not.

Once ADX starts dropping below 50 again, it could mean that the uptrend or downtrend is starting to weaken and that it might be a good time to lock in profits.

How to Trade Using ADX

One way to trade using ADX is to wait for breakouts first before deciding to go long or short. ADX can be used as confirmation whether the pair could possibly continue in its current trend or not.

Another way is to combine ADX with another indicator, particularly one that identifies whether the pair is headed downwards or upwards.

ADX can also be used to determine when one should close a trade early.

For instance, when ADX starts to slide below 50, it indicates that the current trend is losing steam. From then, the pair could possibly move sideways, so you might want to lock in those pips before that happens.

趋势强度指标

       趋势强度指标,简称ADX,是另一种摇摆器。它的波动指数从0到100,当指数低于20表明趋势疲弱,高于50表明着趋势强劲。

       和RSI不同的是,ADX不是用来判断趋势的上升或下跌。它只是用来衡量目前趋势的强度。正因为如此,ADX通常用来识别现在的市场,究竟是震荡 还是一个新的趋势开始。

        看看下图表中,我们框起来的部分:


       在第一个例子,ADX指数 从9月下旬至十二月初,都低于20。正如你从图中可以看到的,欧元/瑞郎 在这段时间内被困在一个范围中。直到一月初,ADX指数开始攀升至50以上,这表明一个强烈的趋势可能在等待时机。

       然后你看发生什么事! 欧元/瑞郎跌破振荡范围的底部,强大的跌势来了。噢,那大约可以赚进400点。

       宝贝,快下单吧!

       现在,让我们来看看下一个例子:

       就像我们的第一个例子,ADX在低于指数20的范围,徘徊了好一阵子。同时,欧元/瑞郎也一直在振荡。很快,ADX升起至50以上,欧元/瑞郎 也突破了它振荡范围的顶部。

嗒-哒-哒!(敲门声)

       一个强劲的升势送到咯。这可高达300个点,来。。。签名,盖章 然后 交货!

       看起来很简单,对吧?

       使用ADX也有一个问题,那就是它不会告诉你该 买入 还是 卖出。它告诉你的是,现在这趋势的强度,是否适合下单。

       一旦ADX开始下降低于50,这可能意味着上升趋势或下降趋势已经开始减弱,这可能是一个锁定利润的好时机。

如何使用ADX进行交易

       使用ADX进行交易的方法是,等待突破之后,才决定是 做多 还是 做空。ADX可以用来确认,该货币对的趋势 能否继续下去。

       使用ADX的另一个方法 是与其他的指标一起使用,尤其是 哪些可以确定货币对的价格,是向上还是向下的指标。

       ADX也可用于确定,是否应该尽早平单出场。

       举个例如,当ADX开始低于50时,则表明目前的趋势正在失去动力。之后,该货币对可能会振荡移动,所以你可能会在振荡发生之前锁定仓位。