Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. NanoStockk / Getty Images The average directional ...

ADX stands for Average Directional Movement Index, an oscillator driven by a mathematical derivation used in technical analysis to assess the strength of a price trend in a financial security.

One of the difficulties in trading is that it is not easy to determine whether a trend will continue or whether it is poised to reverse. Correct risk management will ensure that an incorrect trade ...

I am often asked about my use of indicators in addition to price patterns. Remember, all indicators are derivatives of price. So, as a general rule my attitude has been why study indicators when I can ...

In the trading world, having the right tools and knowing how to use them correctly can be the difference between success and failure. One such tool is the Average Directional Index (ADX), which is ...

Investors with short-term timeframes often use technical analysis to evaluate price movement and identify trends. Fundamental analysis may not be particularly useful for traders looking to pop in and ...

Technical Indicators are used for trend following, tracking price oscillation, measuring volatility, and finding support and resistance levels. Grouping indicators into these “families” accelerates ...

Detecting a strong directional move is the most important skill for all traders to have. Trend chasing is the most popular technical method of profitable trading. But stock prices spend more time in ...

Entering into a fading or weakening trend is one of the most frustrating things a trader can encounter. Many traders have strategies for trend entry but if a trend has run its course and is weakening ...