Trade with ADX indicator and make a profit!


It is very important for the investor to find the perfect moment to start the trade with free trading signals for binary options. There are many tools that will make your trading more convenient. However, it is better to use the ADX indicator and "Medium Direction Strategy". 


Utilize this indicator for this strategy:


  • DMI, Directional Movement Index, which shows the trend’s direction and the points of reversal;

  • Average Directional Movement Index, which displays the power and the changing of price in dynamics.




On the binary options charts ADX is shown in three graphics:

 

  1. The + DI line shows the increment of the price;

  2. Decreasing in –DI.

  3. ADX is the ratio of the difference or the total sum of + DI / -DI values over several timeframes. These graphics will help you to identify the trend.  


According to the Medium Direction Strategy, you can discover the signals to open the trading in the following way: if +DI is higher than -DI and ADX confirms the decreasing of sum, the trader needs to open a RISE-option. In this situation, the market is going down and traders should open the FALL-option. With sideways or falling ADX, it is better to stay away from the market. Here are the options trading signals.


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