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In both cases the following general principles apply: An ADX line rising above 20 or 25 indicates that a trend may be forming options trading hand signals will be a good candidate for a trend following indicator (see filters, below) DI crossing over DI is a signal for going long DI crossing over DI is a signal for going short ADX line falling below 40 is an early indication of a change in trend The ADX line should be between the DI lines when the market is trending An ADX line below 20 is a warning not to trade - As you can see there are a couple of important points highlighted.
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