Index average directional movement

Watching the pair EUR / USD rose up, you still desperately seized the opportunity and bought. But now after the next increase, the price of this pair started to decline, and you think seriously about whether there is a way to measure the strength of the movement to advance to protect your profits. Yes there is, and it is called the average directional movement index.

Average directional movement index was developed by JW Wilder, and is intended to assess the strength of the current trend, regardless of its direction. This technical indicator in the online forex trading currency does not indicate the direction of a trend, and its strengthening or weakening.