New York NY
The  ADX is one of approx 32 indicators we use when determining directional momentum, We know some of the "other traders" that can't properly read a chart and rant and rave about moving averages cause thats the only thing they can even come close to understanding and while the 10 sma and 20 sma etc have their place, using them alone without the other 31 indicators is nothing more than "Technical Analysis for Dummies"

As 21st Century Traders we've come to realize that it takes a computer to beat a computer
and that you need more than "moving averages" they used back in the early 20th century.

Introducing Technical Analysis 101

ADX - an oscillator the fluctuates between zero and one hundred and although the readings scale from 0-100 the readings above 65 are extremely rare. Lower readings however such as 20 or so indicate a weaker trend while conversely a reading above 45 indicates a
relatively strong trend, - the strength in trend can be upward or downward.

This indicator doesn't classify the trend as bullish or bearish but rather ascertains the STRENGTH of the current trend. A reading over 45 can indicate a strong down or up trend As the ADX LINE IS NON DIRECTIONAL it doesn't tell you if the market is in an uptrend or downtrend but simply how STRONG or WEAK the current TREND in the financial instrument you are trying to analize is, to ascertain the direction of the trend a technician must look at the +DI & -DI indicators for this. When the ADX is above 45 it is indicating a strong trend,

conversely when the ADX is fallig below 20 ish it is indicating  a weak or range bound market.

We use the ADX in ascertaining and identifying the potential starting of a NEW TREND in the market. Pro Traders will scan the market for readings  below 20 or above 45 as a signal
that the market is beginning a new trend, the longer a reading has stayed below 20-ish the greater weight a new signal has.

We also use the ADX  to identify TREND REVERSALS when the ADX is moving above the +DI line and the -DI line & then turns lower it is often a clear signal that the current trend in the market is reversing & Pro traders will leg into position according to this indicators readings, Pro traders will position themselves LONG when the +DI crosses above the -DI as this is indicative of the BULLS are in control and Pro Traders will position themselves SHORT when the +DI line crosses below the -DI indicative of a weakening of the bulls momentum and the BEARS are gaining controi - Working on the Floor of the NYSE taught me 2 things, there are those that can read a chart & then there are those that only think they can...