Every trader dreams about that magic trick that delivers better trading results—this one little thing that miraculously turns their strategy into a bullet-proof winner, striking a 100% success rate.

Unfortunately, this article doesn't provide that magic trick. If you are looking for it, you must continue searching (but remember to hit me up if you find it).

However, this article provides a simple trick to improve your trading results. They won't hit a success rate of 100% but should definitely improve.

The best part is that it is a super easy trick that can be implemented or utilized within minutes.

You may already expect what this trick is about: It's about a technical indicator. Drum-roll: Introducing the Average Directional Index (ADX).

What Is The ADX About?

I know it's boring, but let's do some theory first! It will help you understand the indicators and why using them will improve your trading results.

The Average Directional Index (ADX) is an indicator used to measure the trend strength.

The indicator was developed by J. Welles Wilder in 1978. Over the years, the ADX has become a reliable tool for traders looking to identify strong market trends.

Here's the part you should understand: The power of the ADX lies in its ability to filter out noise. Subsequently, it provides a clear view of whether a market is trending or ranging.

Here's How The ADX Helps To Achieve Better Trading Results

Here's what I experienced when using the ADX in my trading strategies.

The ADX has really simplified how I analyze trends by quantifying their strength. It's been a game changer for me, helping to gauge market momentum and enabling me to make more informed decisions.

2—Versatile Usage

Especially recently, I trade different timeframes. In this context, the ADX fits into my diverse trading strategies. It's versatile across various markets and timeframes.

3—Making More Confident Decisions

Incorporating the ADX into my trading approach has added a crucial layer of confirmation. This boost in confidence has significantly improved my decision-making process, making me feel more secure about the trades I place.

By integrating the ADX into your trading strategy (we will discuss how to do that in a second), you can filter out "false alerts." In other words, you filter out trade signals that are not supported or driven by a trending market.

And since we all know that "the trend is your friend," you don't want to trade markets that aren't trending. Ultimately, the number of entry signals you get is lower; however, the quality will be significantly better.

How To Use The ADX?

Integrating the ADX into your trading strategy is easier than easy. Here's how I use it:

  • I always turn to the ADX for that extra assurance before making any trades.

  • Therefore, in my trading strategy, an ADX value above 30 is my green light for a strong trend. Even reading around 25 catches my eye, signaling a trend building up and potentially worth my investment.

  • Whenever the ADX is below 25, it's my cue to hit the brakes. It usually means the trend is weak or the market's just moving sideways. I've learned patience pays off here, waiting for clearer signs of a solid trend before jumping back in.

Putting The 1-Minute Hack To Test

Here's what you can do: Integrate the ADX into your trading strategy for at least a month. This period allows you enough time to see how the ADX can change your approach to identifying trade opportunities and avoiding potential pitfalls. Alternatively, you can backtest your strategies after including the ADX to check how they would have performed.

Wrapping It Up Hack

The ADX is a powerful yet straightforward tool that can clarify trend strength, helping you make more confident trading decisions. By incorporating it into your trading strategy, you're not just adding another indicator but adopting a strategy for more precise, more informed trading.

Give it a go, and you may find that the ADX becomes an indispensable part of your trading arsenal.