The ADX could be very helpful in avoiding ranging markets. It is a reliable tool when determining trend strengths. Traders can look at the values to trade forex just when the trend is starting to show signs of strength.
The ADX-based trading strategy is a simple intraday system, it is ideally used by day traders. Because we combine the concept of the previous day’s high and low and then take the position of the breakout from these levels using the ADX indicator, traders can rest assured they are entering into a position when the trend is starting to become strong.