This indicator is used to increase the profit and reduce the loss in the market trend. This indicator gives a strong change in the market trend that’s means that there are more chances of gaining profit rather than loss.
Average Directional Index Volume Indicator
Average directional index indicator defines that at which point the trend will be strong. It indicates the strongness of trend changing. Sometimes this indicator also called a trend indicator. The trend may be appeared in the form of a friend and it is important to know that who is a friend.
Working
The Average directional indicator’s value tells the strength of the trend. Its average calculation displays the price result of a specific time period. It tells that when the price will increase and when it will become low. Normally it uses 14 bars that is its default setting. This can be used for stock exchange, mutual funds and also for trend exchange. It displays result and calculate the outcomes with a single line that is plotted on the chart. This line moves between 0 and 100. 0 means low and 100 means high. This line shows the price that when the trending price is high or low. This indicator is non- directional.
