ADX in ranging market
Today I am going to get right to the point without a lot of unnecessary talking… well, maybe a little bit of it.
We started talking about ranging markets yesterday. And as usual we are going to have to come up with the ways to determine whether we are in one. Fortunately for us, these ways have already been set up and all we need to do it to know how to use them.
One of the ways to determine whether you are in the ranging market is to use the same ADX that we used in the trending market. Only this time it is going to look a little but different.
A market is ranging when your ADX oscillator is lower than 25. Let me remind you that when it is higher than 25 you are in a trending market. Here, the lower the ADX number is, the weaker the trend is, the more ranging the behavior of the market is going to be.
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