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Figure 5. ADX shows the strength of that movement, with a reading above 25 or 20 showing a strong trend, and readings below 25 or 20 showing a lack of a clear trend, a weak trend or sideways movement.
In essence, if both the trend-following tool and the trend-confirmation tool are bullishthen a trader can more confidently consider taking a long trade in the currency pair in question. If you opt to use indicators, only pick one from each of the following four groups if required, remember indicators aren't needed to trade profitably.