ADX is an indicator which tells about trendiness of themarket not diection.Plot 5ema of ADX itself on ADX.Use short term M.A crossover(3/13ema) for direction. whenever ADX makes an upward crossover,look for M/A crossover for direction and trade accordingly.Like every other indicator, it also may give W/s .But sometimes you will be wonder by its power. These two combinations gave early signals in the event of a mejor crash/boom in the history of Indian s/market. ( Plot and see posions before black 17th May and 11th Sept.)So I like to advise short term traders not to take any position against the said signals otherwise they have to spend many a sleepless night. In this opportunity I like to draw Traderji's attention in it. He can throw more light into it. With regards, Deb.