One of the most indicators that some people think are very simple, but are actually very powerful when understood correctly: ADX

Today’s indicator: Average Directional Index

It’s very important to know from the start:
ADX does not tell you whether the trend is upward or downward
But it shows you:
Is there a strong trend at all or not?

What does it practically offer you?
• Helps you distinguish between a trending market and a ranging market
• Useful in knowing whether the current movement is truly strong or weak
• Helps you avoid many false signals in sideways markets
• Becomes very useful when combined with tools that identify the trend itself

That’s why I see it as one of the best indicators as a strength filter
And not as a standalone entry indicator.

Best use of it:
With a clear trend + price movement + another tool that determines the trend such as moving averages or Supertrend or market structure

Common mistake:
That some see a high ADX and think it means to buy immediately,
While the truth is that a high ADX may only mean that the trend is strong…
But it doesn’t tell you alone whether the strength favors upward or downward movement.

Would you like me to explain tomorrow the simple difference between:
**ADX and +DI and -DI**?