You see the EUR/USD moving strong growth, so you bought the last withdrawal of this right.

But now have higher, two have won the high point, and is declining, do you have a way to measure this force, so that you can have an earlier exit to protect your profits more. At present, it is known as directed average (ADX). Developed by J. Wells Wilder, ADX was to assess the strength of current trends, whether up or down.

The most important point is that this technology will give you are not indicators of the movement direction of the trend, but will tell you, if this acquisition or loss of strength. A simple look at the ADX line graph drawn into the EUR/USD shows the value of this tool.

We can see that the market was moving up strongly as the ADX was moving up. I have drawn lines on the chart with an arrow showing where the ADX peaked and started to move down. We can also see that this change in trend of the ADX was also a change in the direction of the EUR/USD. If the market was in a downtrend, the ADX would also rise as the market was selling off and peak as the market started to change direction back to the upside.

But the key is to remember that this indicator only measures the strength of the trend and does not tell us the direction of that move. As a trend trader, this change in momentum can be a valuable tool to help you determine the end of a strong move. If trading with the trend, a trader using the ADX on EUR/USD trades would exit as the ADX peaked and started to move down. This way the trader would be able to better time their exit and keep more of the profits in the trade.