Welles Wilder's Average Directional Index (ADX):
writes about this indicator in his book "Directional movement is the most fascinating concept
I have studied." Wilder designed ADX with commodities in mind, but this indicator can also be
applied to stocks. Commodities tend to be more volatile with short and strong trends. Although
for volatile stocks it can be used for generating buy and sell signals however it is not
suitable to trade in low volatility stocks with its generated buy or sell signals.
Disclaimer: Stock market is a risky place and trading based on this indicator is totally on your own risk. We assume absolutely no responsibility if you bear losses in your trading.