Employ the ADX indicator for identifying optimal buy and sell moments. This indicator gauges trend strength, enabling Gunbot to execute purchases in powerful uptrends and sales during significant downtrends. Gunbot combines ADX with the Directional Index for enhanced performance.
The ADX is a widely used technical analysis instrument that traders utilize to detect market trends. It is determined through a set of computations that analyze price movement highs and lows over a designated time frame. Typically, an ADX value above 25 signifies a robust trend, while values below 20 indicate a weak trend. Employing ADX alongside other indicators can reinforce trading signals and assist traders in making well-informed decisions.
Working with the ADX Indicator
This section outlines how futures trading functions using the ADX approach. The trade triggers slightly vary from those employed in spot trading.
Gunbot initiates a single position - either long or short - and concludes it upon reaching the target. If a stop is activated before realizing a profit, Gunbot sets a stop order at a loss. After finalizing a position, Gunbot proceeds to establish a new long or short position.