ADX Trend Trading

Futures Advanced NIFTY Futures BANKNIFTY Futures FINNIFTY Futures Stock Futures

Identifies and trades strong trends using ADX and DI indicators

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Quick Reference

Strategy Type ADX Trend Strength and Directional Movement Trading
Market Outlook Identifies and trades strong trends using ADX and DI indicators
Risk Profile Moderate - trades only confirmed trends with measurable strength
Reward Profile Excellent returns from riding strong, persistent trends
Time Horizon Swing to positional (days to weeks)
Capital Requirement Moderate (₹2,00,000 - ₹5,00,000)
Margin Type NRML for positional trend trades; MIS for intraday DI signals
Best Used When ADX above 25 confirming strong trend, DI crossovers for direction

When to Use This Strategy

ADX above 25 confirming strong trend, DI crossovers for direction

India-Specific Notes

Lot Sizes

NIFTY 25 units per lot (₹50 per point)
BANKNIFTY 15 units per lot (₹15 per point)
FINNIFTY 25 units per lot (₹25 per point)
Stock Futures Varies by stock

Adx Characteristics

Trending Threshold ADX > 25 indicates strong trend
Strong Trend ADX > 40 indicates very strong trend
Weak Trend ADX < 20 indicates range-bound market

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