How to Read the Indicator
December 6, 2021
What is the Average Directional Index?
December 6, 2021

Indicator Settings

It is best to leave the indicator setting (period) at the standard 14. You may also use periods of 12, 18, or 21 for the ADX; periods from 7 to 30 are occasionally used.

With longer periods, trend information is more reliable, but the calculation of the indicator takes more time, and it is possible to miss a significant portion of a trend before the indicator reveals it.

The use of shorter periods allows the quicker indication of trends, but the quality of such signals is worse.

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