The ADX Moving Average Strategy
Moving averages provide excellent signals in trending markets. The nemesis to a moving average are sideways ranges. One way to filter out sideways ranges is using an indicator called the Average Directional Indicator (ADX)
Apply the ADX to your chart and when it moves above a reading of 20, then the market is trending and the moving averages will provide better signals. If the ADX is below 20, then a sideways range has developed and traders might want to ignore any moving average signals you receive.
