This benchmark shows a real-time overview of the technical analysis for the selected timeframe. Summary Gold Spot/USD is based on the most popular technical indicators such as moving averages, oscillators and pivots. We use the above mentioned instruments at GOLD-Signals.net to produce Technical Analysis with a high success rate.
Today we are describing or explaining the Oscillator - AVERAGE DIRECTIONAL INDEX (ADX)
The Average Directional Index (ADX) aids traders in assessing the strength of a trend, without specifying its direction. It serves to identify whether the market is in a consolidation phase or embarking on a new trend. ADX is closely associated with the Directional Movement Index (DMI), which incorporates the ADX line. This oscillator operates within a range of 0 to 100, where elevated readings signal a robust trend, while lower readings suggest a feeble trend. Traders often combine ADX with directional indicators. The indicator's origin can be traced to Welles Wilder, a developer of several fundamental trading indicators.