📈 ADX Trend Strategy in Python – Confirm Trend Strength with Confidence!
Are you tired of false breakouts and choppy markets? Welcome to the world of ADX Trend Strategy — a powerful way to confirm if a market trend is strong enough to trade. In this blog, we’ll learn: What ADX is How it helps confirm trends How to build a simple ADX strategy using Python and Pandas 🤔 What is ADX? ADX (Average Directional Index) is a technical indicator that measures the strength of a trend , whether it's up or down. ADX Value > 25 → Strong trend (up or down) ADX Value < 20 → Weak or no trend It doesn’t tell you direction , only strength Often used with +DI and –DI (Directional Indicators) 🧠 Trading Idea Buy Signal: ADX > 25 → strong trend +DI > –DI → uptrend Sell Signal: ADX > 25 → strong trend –DI > +DI → downtrend 🐍 Python Code to Implement ADX Strategy Let’s build it step-by-step. 🔧 Step 1: Import Libraries import pandas as pd import yfinance as yf import matplotlib.pyplot as p...