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Forex traders use technical analysis to determine optimal entry and exit points in the market. They focus on the ADX key points of reference, which are highpoints and line crossovers. As with any technical indicator, an ADX chart will never be 100% correct in the signals that it presents, but the signals are consistent enough to give a forex When trading, it can be helpful to gauge the strength of a trend, regardless of its direction. And when it comes to evaluating the strength of a trend, the Average Directional Index is a popular technical indicator for this purpose.
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