# What is ADX Indicator? How to Use ADX in Exness
***In the dynamic world of online trading, understanding and using technical indicators effectively can make a significant difference in decision-making. One such powerful tool is the ADX indicator (Average Directional Index). For traders using Exness, the ADX is a valuable ally in assessing the strength of a trend, helping them navigate the market with greater confidence.***
This guide will explore what the ADX indicator is, how it works, and how to use it effectively within the Exness **[learn trading](https://exnessbroker.io/category/learn-trading/)** platform. Currently, the domain exnessbroker.io is the official subdomain of Exness.
## What is the ADX Indicator?

The ADX indicator is a technical analysis tool developed by J. Welles Wilder in 1978. It is designed to measure the strength of a trend rather than its direction. The indicator is part of the Directional Movement System and consists of three lines:
- ADX line: Measures trend strength (values range from 0 to 100).
- +DI line (Positive Directional Indicator): Measures upward movement.
- −DI line (Negative Directional Indicator): Measures downward movement.

The ADX is primarily used to identify strong trends. A reading above 25 typically indicates a strong trend (either bullish or bearish), while a reading below 20 signals a weak or non-trending market.
## Why Use ADX in Exness?
**[About us Exness](https://exnessbroker.io/about-us/)** offers a wide variety of tools and indicators for traders of all levels. The ADX indicator is readily available in the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms provided by Exness. Here's why using the ADX on Exness is advantageous:
- Built-in Indicator: No need for external downloads or plugins.
- Compatible with All Chart Types: Works on forex, stocks, indices, and cryptocurrencies.
- Customizable Settings: Adjust timeframes and input values to suit different strategies.
- Accurate Execution: Combine trend strength detection with
Exness's ultra-fast order execution.

Whether you're a day trader, swing trader, or long-term investor, understanding how to use ADX can significantly enhance your strategy on Exness.
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## How to Add ADX in Exness MT4/MT5

To get started, follow these steps to add the ADX indicator in your Exness terminal:
- Open Your Trading Platform (MT4 or MT5) from Exness.
- In the Navigator Panel, expand the Indicators section.
- Find and click on Trend → Average Directional Movement Index (ADX).
- Set your preferred period (14 is standard) and customize the visual settings.
- Click OK to display the indicator on your chart.
You’ll now see the ADX line along with the +DI and -DI lines under your main chart.

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## How to Use the ADX Indicator in Trading

Here's how traders commonly interpret and use the ADX indicator:
### Identifying Trend Strength
- ADX < 20: Weak trend or ranging market – best to stay cautious or use range-bound strategies.
- ADX > 25: Strong trend – suitable for trend-following strategies.
### Confirming Breakouts
Before entering on a breakout, check if the ADX is rising above 25. This suggests that the breakout has momentum and isn’t a false signal.
### Combining with Other Indicators
Many traders on Exness combine ADX with:
- Moving Averages for trend confirmation.
- RSI or Stochastic Oscillator for entry timing.
- Support and Resistance for price targets.

Using ADX alongside these tools enhances your ability to filter out false signals and focus on high-probability trades.
## Example Strategy Using ADX in Exness
Here’s a simple trend-following strategy you can test on a demo or live account with Exness:
- Setup: 1-hour chart, ADX with 14-period
- Entry Rules: ADX > 25 and rising, +DI crosses above -DI → Go Long, -DI crosses above +DI → Go Short
- Exit: When ADX falls below 20, Or opposite DI crossover occurs

This method ensures you only trade during strong, well-established trends, minimizing noise and maximizing potential.

The ADX indicator is a versatile and powerful tool for gauging trend strength. When used correctly, it can be a game-changer for traders on Exness. Whether you're looking to enter trending markets or avoid sideways noise, ADX offers clarity in your decision-making process.
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