It also informs you if it is early or late in a trend. So with reference to the ADX you can readily determine which of the two main types of indicators you should be using in the current market environment. The table indicates the appropriate type of indicator for different ADX defined market environments. ADX Score ADX Direction Appropriate Tech. This is often late in confirming trend entry.
Trends emerge from non-trends.
The turn down of the ADX at these levels, when it above both DI lines, almost always means the end of that trend. It does not necessarily mean trend reversal, more likely a period of retracement and consolidation. Time to exit. Reverse only on other evidence of trend reversal.