Query-adx

#1
Hi
I have 1 query. experts please clarify regarding this :

I have studied ADX. Books says ADX does not signifies what trend it has means positive or negative but only signifies weather it has trend in it or not. But in live market i m seeing since last 15 days that when adx scales up from 20 then stock or index flows downward only.
 

colion

Active Member
#2
Hi
I have 1 query. experts please clarify regarding this :

I have studied ADX. Books says ADX does not signifies what trend it has means positive or negative but only signifies weather it has trend in it or not. But in live market i m seeing since last 15 days that when adx scales up from 20 then stock or index flows downward only.
The stock is trending down and ADX is moving higher. That's the way it works. Could also have the stock trending upward and then the ADX will also move higher. When the ADX moves higher the stock is trending either up or down.
 
#3
that is perfectly normal.

index is going down and garnering momentum. this is making the trend even stronger.

and since the trend is getting stronger adx is moving up. thats the way it is supposed to be.
 

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