Which direction should the ADX line be moving to implement a trend-following strategy?

The ADX (Average Directional Index) line is a tool used to measure the strength of a trend without ascribing a direction to it. For a successful trend-following strategy, the ADX line should be pointing up. This upward movement indicates that the market is experiencing increasing momentum and strength in a particular trend, whether it is bullish or bearish.

When the ADX is rising, it suggests that there is a strong trend in place, and as a trend-following trader, one would seek to capitalize on this momentum. An upward ADX indicates that price action is becoming more directional, allowing traders to join the prevailing trend with greater confidence, expecting that it will continue.

In the context of a trend-following strategy, monitoring the ADX provides valuable information. A rising ADX can signal traders to enter positions in the direction of the trend, as the market is confirmed to be moving strongly in one direction. This is integral for making informed decisions within technical analysis and ensures that traders are aligned with market momentum.