ADX is a trend following system, it consists of three lines; (i) ADX (blue line), (ii) Up Direction Indicator (green line) (iii) Down Direction Indicator ( red line).
How to Use:
Please refer to the above NIFTY Chart: The standard interpretation for using the ADX is to establish a long position whenever the +DI (green line) crosses above the -DI (red line) and for Short Position whenever the -DI (red line) crosses above the +DI (green line).
