The "ADG" you mentioned most likely refers to **ADX / DMI**, a common trend-strength indicator set.
ADX measures trend strength, while +DI and -DI in DMI help observe directional pressure.
What ADX Shows
A higher ADX usually suggests a stronger trend.
But ADX does not tell direction. It only tells strength.
Direction needs +DI and -DI:
- +DI above -DI suggests bullish pressure
- -DI above +DI suggests bearish pressure
Common Mistake
High ADX does not mean price must rise.
In a strong downtrend, ADX can also be high.
Users must combine ADX with direction and price location.
Alert Ideas
Ordinary users can set alerts for:
- ADX rising: trend strengthening
- ADX falling: trend weakening
- +DI crossing above -DI
- -DI crossing above +DI
- High ADX with adverse price movement
Historical Context
ADX / DMI came from J. Welles Wilder’s 1978 book New Concepts in Technical Trading Systems. Wilder introduced several indicators that are still widely used today. The historical value of ADX is helping traders separate trending markets from non-trending markets, not telling them exactly when to buy or sell.
The Value of AlphaPony
AlphaPony, the AI investment assistant under CZCC, can turn ADX / DMI changes into trend-strength alerts and reduce misreading strong trend as only bullish.
Conclusion
ADX / DMI are useful for trend strength and direction, but they need price and risk context.
Ordinary users should treat them as trend alert tools.
This article is for educational and informational purposes only and does not constitute investment advice. Crypto assets are highly volatile. Please make decisions based on your own risk tolerance.